Summary:
- ZEW Economic Sentiment index expected to deteriorate in June
- Mario Draghi and Mark Carney to participate in a policy panel discussion in Sintra, Portugal
- API report forecasted to show a 1.3 million barrel drop in US stockpiles
8:00 am BST - Turkey, Industrial production for April. The Turkish lira has been losing ground as of late due to the USD strengthening and lacklustre domestic data. Homes sales data released yesterday showed a major 31.3% YoY drop as high interest rates slowed credit action. Today’s industrial production print is expected to show a 2.5% YoY drop. While this may seem weak on the face of it, one should keep in mind that industrial output data has improved in the past 4 consecutive months.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app10:00 am BST - Germany, ZEW Economic Sentiment for June. Moods among German institutional investors were poor over the past year to say the least. During that time the German ZEW Economic Sentiment index revisited levels not seen since late-2012. The data improved at the beginning of 2019 and reading for April even showed a non-negative figure. However, last month’s print showed decline to -2.1 pts and market consensus expects deterioration to continue with reading for June forecasted to come in at -5.7 pts.
1:30 am BST - US, Housing market data for May. The US housing market showed signs of struggling earlier this year but remained strong. With raising chances of a rate cut in the US, data from this segment of the economy may start to improve. Building permits are expected to remain flat in May while housing starts should drop 0.4% MoM. Nevertheless, one should keep in mind that when it comes to the USD, this week is all about tomorrow’s Fed meeting.
9:40 pm BST - API report on crude oil inventories. In spite of declines hinted by seasonal patterns, the oil inventories data keeps showing strong builds. Trade wars bite into the demand for oil exerting additional pressure and increased tensions on the Middle East were not enough to offset price declines so far. The OPEC meeting next week (25 June) may make the situation a bit more clear but until then oil traders have to focus on stockpiles data. API estimates are expected to show a 1.3 mb decline.
Central bankers’ speeches:
- 9:00 am BST - ECB President Draghi (Introductory speech)
- 3:00 pm BST - BoE Governor Carney & ECB President Draghi (panel discussion)
EURGBP delivered an insane upward move during the past month and a half as euro regained some ground and the British pound remained pressured by the Brexit drama. The pair is trading just a notch below the resistance zone ranging 0.8860-0.9000, a hurdle that limited upward moods throughout the second half of 2017 and saw price reaction in 2018 as well. The pair may become more active in the afternoon during Draghi-Carney panel. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
