Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Day Ahead: Top 3 Things to Watch

Published 2018-03-06, 04:12 p/m
Updated 2018-03-06, 04:18 p/m
© Reuters.  What to watch out for in tomorrow's session

© Reuters. What to watch out for in tomorrow's session

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

1. Beige Book, Private Sector Jobs Data, and Fed Speakers To Help Dollar Rebound?

Investors are expected to carefully parse ADP nonfarm employment data, which often serves as a precursor to the monthly nonfarm payrolls data slated for Friday. Economist forecasts the private sector created 195,000 jobs in February, well below the 234,000 jobs seen in the previous month.

Speeches by both FOMC member Raphael Bostic and FOMC Member Bill Dudley is slated for 08:00 a.m. ET and 08:20 a.m. ET, respectively, and could offer clues on sentiment among Fed members for a faster pace of rates hikes.

The Federal Reserve’s beige book, a report that includes anecdotal evidence on the health of the US economy from 12 regions will be closely watched for any subtle change in commentary on inflation following hawkish language seen in the Fed’s January meeting minutes.

The dollar fell against a major basket of currencies Tuesday amid ongoing concerns over the prospect of a trade war, and fears that economic adviser Gary Cohn could step down if Trump decides to proceed with tariffs.

2. Crude Supplies To Show Build For Second Straight Week?

A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday at 10.30 a.m. ET is expected to show that U.S. crude stockpiles rose for the second straight week.

Analysts forecast crude inventories rose by about 2.7 million barrels in the week ended March 2.

Crude oil futures settled just above breakeven on Tuesday as investors appeared to unwind their bullish bets oil prices amid fears over a build in U.S crude stockpiles.

3. Bank of Canada Expected To Leave Rates Unchanged

The Bank of Canada (BoC) is expected to leave interest rates unchanged on Wednesday at 1.25% as the economy cooled amid several domestic headwinds including tricky North American Free Trade Agreement (NAFTA) negotiations.

Investors will parse the accompanying statement from the BoC to gauge the mood of the central bank for further tightening at policy meetings later this year.

The BoC has raised rates three times since mid-2017, with its most recent rate hike in January this year as BoC governor Poloz attempts to normalize interests rates. The pace of rate hikes, however, is expected to slow amid slack in the labor market and timid economic growth.

USD/CAD fell 0.66% to C$1.2884.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.