Economic calendar: Focus on CPI data and Powell’s testimony

• CPI data releases from Sweden, United States and United Kingdom

• Jerome Powell to testify before the Joint Economic Committee of Congress

• Preliminary Q3 GDP data from Japan to be released over the night

8:30 am GMT - Sweden, CPI for October. Riksbank raised interest rate at the end of 2018 but was reluctant to do so this year. The Swedish CPI data surprised in September by accelerating to 1.5% YoY while markets expected deceleration to 1.3% YoY. Further acceleration is expected in October but it may be not enough to encourage Riksbank members to pull the trigger anytime soon.

9:30 am GMT - UK, CPI inflation for October. The UK labour market data released yesterday disappointed just as GDP and production figures did on Monday. Nevertheless, GBP managed to strengthen. The British pound will get another chance to move today as CPI data for October will be released. It is expected to show headline measure decelerating from 1.7% YoY to 1.6% YoY.

1:30 pm GMT - US, CPI inflation for October. Optimism on the stock markets began to fade as more and more suggests that the Federal Reserve may be reluctant to deliver more rate cuts. As the inflation sits firmly below the Fed’s target, it is also unlikely that we will see any rate hikes anytime soon. CPI is expected to stay at 1.7% YoY in October.

4:00 pm GMT - Powell testifies in Congress. Chairman of the Federal Reserve, Jerome Powell, will testify before the Joint Economic Committee of Congress today. The US top central banker will answer the question on the condition of the economy.

9:40 pm GMT - API report on oil inventories. Upward move on the oil market eased recently with Brent failing to breach the $63 handle and WTI struggling with 200-session moving average. Oil inventories data could trigger short-term moves on the market but it is unlikely that we will see a start to a major move prior to the OPEC meeting. Keep in mind that, data from API and DoE will be released with a one-day lag this week. 

11:50 pm GMT - Japan, GDP report for Q3. Preliminary GDP data from the Japanese economy will be released over the night. Economic growth is expected to be weaker with annual dynamic slowing to 0.8% and quarterly dynamic slowing to 0.2%. However, a significant rebound in the capital expenditures is expected (0.9% QoQ vs 0.2% QoQ previously).

Central bankers’ speeches

• 10:00 am GMT - Riksbank’s Floden

• 6:30 pm GMT - Fed’s Kashkari

• 7:10 pm GMT - RBNZ Governor Ohrr

• 10:50 pm GMT - RBA’s Bullock

Major companies reporting earnings today

• NetApp (NTAP.US)

• Cisco Systems (CSCO.US)