Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
Eurozone Inflation
Economists forecast the final reading of Eurozone inflation for December to remain unchanged at 1.4% from an earlier reading.
Inflation has trailed the European Central Bank’s target, of below, but close to, 2% over the medium term.
The inflation report comes amid a Reuters report, citing sources close to the ECB, suggesting that the central bank was unlikely to alter its policy message at next week’s meeting.
EUR/USD fell 0.08% to $1.2256.
Beige Book, Fed Speakers, Industrial Data
Economists forecast industrial production rose 0.3% in December, a notch faster than the 0.9% growth in the previous month.
The Federal Reserve’s beige book, a report that includes anecdotal evidence on the health of the US economy from 12 regions is expected to be closely parsed by market participants for clues on the path of U.S. monetary policy and the progress of the economy.
Speeches by Fed members' Evans, Kaplan and Mester, will follow the Beige report and could offer additional insight into the Fed’s thinking on monetary policy. Dallas Fed president Robert Kaplan said recently he expects three US rate hikes in 2018 as the “base case.”
The dollar traded higher against its rivals on Tuesday but remained close to three-year lows.
Bank of Canada Rate Decision
The Bank of Canada (BoC) is expected to add to its two rate hikes in 2017 and raise rates on Wednesday by 0.25% to 1.25% following a raft of positive economic data.
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 North American Free Trade Agreement (NAFTA) uncertainty has dominated Canadian dollar direction over the past week, Action Economics said, but added that it doesn’t expect the uncertainty to weigh on the Bank of Canada’s interest rate decision.
USD/CAD traded at C$1.2430, up 0.04%.