Economic calendar: Brexit report, US GDP report revision and oil inventories data

Summary:

• BOE will publish results of Brexit stress tests in the afternoon

• US GDP report revision may impact USD

• Carney and Powell to deliver speeches today

The economic calendar on Wednesday seems to be centred around USD. Investors will be first offered GDP report revision followed by semi-important data from the housing market. Apart from that, the Bank of England is scheduled to release results of Brexit stress tests in the afternoon. The oil inventories data and central bankers’ speeches will round up the day.

1:30 pm GMT - US, GDP report for the third quarter. The second reading of the US GDP report for Q3 will open today’s calendar. The preliminary reading showed pace of growth at 3.5%, somewhat higher than market consensus. As flash readings tend to be inaccurate therefore there is a scope for surprise. Market consensus points for an annualized growth of 3.6% QoQ. Investors will look for a hints on the impact of the trade conflict. Simultaneously, wholesale inventories print for October will be released and it is expected to show 0.5% MoM advance.

3:00 pm GMT - US, New Home Sales for October. A range of weaker readings from the US housing market raised questions whether current stellar pace of the US growth can be sustained. Moods deteriorated even more when homebuilder sentiment index showed a significant drop earlier this month. Having said that, investors should cautiously analyze incoming readings from this economy sector to see whether we are experiencing beginning of a new trend. New home sales for October are expected to reach 575k.

3:30 pm GMT - US, DOE report on oil inventories. While the market expected that API report released yesterday will show more than desired decline in the US crude oil stockpiles, the inventories increased once again. Nevertheless, the price of oil kept rising as some optimistic remarks concerning the trade war boosted moods on the markets. Today’s DOE report is expected to show a decline of 0.6 mb in oil inventories and a build of 0.8 mb in gasoline stocks.

4:30 pm GMT - UK, BOE’s Brexit report. The Bank of England will release the Financial Stability Report today in the afternoon. While this kind of reports seldom cause any larger price swings on the market this time may be different. Along with the Report the Bank will release results of Brexit stress tests. While the uncertainty whether the UK will leave the EU with or without a deal still lingers, today’s release may give investors somewhat more clear picture of possible economic outcomes.

Central bank speakers scheduled for today:

• 12:05 pm GMT - ECB’s Coeure

• 1:00 pm GMT - ECB’s Guindos

• 1:05 pm GMT - SARB Deputy Governor Mminele

• 3:20 pm GMT - ECB’s Praet

• 4:45 pm GMT - BOE Governor Carney

• 5:00 pm GMT - Fed Chair Powell

The US dollar index (USDIDX) is trading close to 2018 high around 97.55. In case the GDP report revision shows growth accelerating and Powell delivers some hawkish remarks we may see the index testing this level later today. Source: xStation5