OECD lifts global growth forecasts
US inflation data in the spotlight
Bitcoin flirts with $9k mark
Early trading on Tuesday was calm as investors stay cautious ahead of US inflation reading. Having that in mind we can expect increased volatility in the early afternoon as the release is scheduled for 12:30 pm BST. Looking at the FX market NZD is once again the strongest currency in the G10 basket while JPY is the biggest underperformer. Oil trades lower ahead of today’s API report release. Elsewhere, gold drops slightly on the back of USD strenghtening.
The OECD has just released its report where it decided to lift global growth forecast compared to the November projections despite risks stemming from a possible trade war as well as rising stocks’ valuation. As per the newest estimate the global economy will expand 3.9% this and the following year compared to 3.7% seen at the end of the past year.
Major cryptocurrencies have not witnessed any greater volatility recently, hence most of them have remained within a consolidation mode. While prices have not changed too much we were offered several interesting stories concerning digital currencies which on the face of it seem to be positive.
Major stock indices from Europe opened slightly higher on Tuesday while benchmarks from emerging economies lagged behind. The UK Office for Budget Responsibility will outline the Brexit divorce bill today. This will be the first time when British authorities will provide some numbers on the cost of Brexit.
Looking around the FX market one may notice that the NZ dollar has been the strongest current among its major peers as of yet, however, those gains have not been spurred by any macroeconomic reading. The sole event during the Asian session was the speech delivered by RBNZ’s acting governor Spencer, albeit his remarks concerned macro-prudential policy, hence an impact on the domestic currency was almost neither.
In Tuesday’s economic calendar we have few releases planned but some really important ones. The US inflation data will draw investors’ attention as it may be decisive when it comes to the pace of Fed’s monetary tightening. It may also set the attitude of the central bankers ahead of the next week’s meeting.
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