INVESTORS BRACE FOR ACTIVE WEDNESDAY SESSION
A deluge of market moving events will make headlines on Wednesday, including a combination of economic data and monetary policy speeches from across Europe and the United States.
Action begins at 07:45 GMT with a report on French gross domestic product (GDP). The French economy is forecast to expand 0.5% in the third quarter, which translates into a year-over-year gain of 1.9%.
The Bank of England (BOE) is scheduled to release its monthly reports on consumer credit and mortgage approvals at 09:30 GMT.
Shifting gears back to the Eurozone, Eurostat will report on consumer confidence, business climate, industrial confidence and economic sentiment at 10:00 GMT.
Preliminary inflation data will also make headlines later in the day as Germany unveils its consumer price index (CPI) for the month of November. CPI inflation is forecast to rise 1.7% year-over-year. The harmonized index of consumer prices (HICP) is expected to come in at 1.7% annually.
During the New York session will see a steady stream of key events, beginning at 13:30 with revised US GDP numbers. The world’s largest economy is forecast to expand 3.2% annually in the third quarter, following a 3% expansion in Q2.
Later in the morning, the National Association of Realtors (NAR) will release the latest pending home sales index for October.
On the monetary policy docket, Federal Reserve Chairwoman Janet Yellen will testify before Congress at 15:00 GMT. The Fed boss is winding down her first and only term as Chair before Jerome Powell takes the reigns in February.
Yellen’s colleagues William Dudley and John Williams are also scheduled to speak Wednesday.
Bank of England (BOE) Governor Market Carney will also deliver a speech that coincides with the start of North American trading. The BOE has begun the long, slow path of policy normalization in an attempt to curb surging inflation.
The euro lost some of its momentum on Tuesday as it fell back below 1.1900 US. The EUR/USD exchange rate was last seen trading in the 1.1850 region, where it was little changed compared to the previous close.
Cable escaped a highly volatile session on Tuesday to trade near multi-month highs. GBP/USD is currently trading around 1.3360, which represents a gain of more than 100 pips from the session lows. Immediate support levels are located at 1.3310 and 1.3280. On the flip side, resistance is coming in strong at the 1.3380 and 1.3420 levels.
The Japanese yen strengthened against the dollar on Tuesday, with the USD/JPY falling back toward 111.40. The pair was last seen trading at 111.49, not far off the initial resistance of 111.60. Above that level, USD/JPY is likely to face a major hurdle at or around 112.00.