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Day Ahead: Top 3 Things to Watch

Published 2017-10-17, 04:56 p/m
© Reuters.  What to watch out for in tomorrow's session
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

Dollar in Focus: Beige Book, Housing Data, Fed speakers

The dollar could be the 'one to watch' in Wednesday’s session as a raft of top-tier economic data is expected to provide the greenback with fresh direction.

U.S. home building activity is expected to remain steady for the second month in a row after a surprise slump in August which followed a fall in construction of single and mutli-family homes.

Investors will turn attention to monetary policy as FOMC members Robert Kaplan and William Dudley are slated to deliver speeches, which may offer an insight into the central bank’s thinking on future rate hikes.

The Federal Reserve’s beige book, a report that includes anecdotal evidence on the health of the US economy across 12 Federal Reserve Districts may offer additional clues on the path of U.S. interest rate hikes as well as an update on the progress of the economy.

The dollar rose against its rivals on Tuesday.

U.S. crude oil stockpiles to show fourth-straight weekly decline?

A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles fell for a fourth-straight week.

Analysts forecast crude inventories fell by about 4.2m barrels in the week ended Oct. 13.

Crude oil prices have made positive to the week amid concerns over potential supply disruption in Iraq as fighting between Iraqi and Kurdish forces broke out earlier this week.

Crude oil futures settled at $51.88, up 1 cent, on Tuesday.

UK labour data in the spotlight

The pound could come under pressure on Wednesday as economists expect labor market data to show wage growth remained subdued in August despite record low unemployment.

Data from the Office for National Statistics is expected to show, average weekly earnings grew by 2.1% year on year in August, unchanged from the previous month.

As for the jobs figures, the unemployment rate is expected to remain steady at 4.3%, the lowest level in more than 40 years.

GBP/USD fell 0.57% to $1.3178 on Tuesday after new deputy Bank of England governor Sir Dave Ramsden said he was not part of the majority of policymakers who favoured a rate hike.

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