After two quiet sessions, Wednesday promises to be a busy day with a raft of key economic data releases which are expected throughout the Europe and US sessions.
Germany’s ZEW Economic Sentiment printed a worse-than-expected 15.7 yesterday, indicating a lot more pessimism is gripping German institutional investors and analysts. This data has printed a negative release since June and the unhealthy Eurozone economic climate does not bode well.
Meanwhile, UK has just released its initial set of data for today. Claimant Count Change was 10,000. This is much weaker than the median forecast of flat. Unemployment rate was slightly better at 7.8 percent, while Average Earnings Index was unchanged at 1.8 percent.
Later, the market will look at a few more important economic releases. Bank of England will issue its Inflation Report and BOE Governor King will present his speech during a press conference. US Retail Sales, PPI, and Business Inventories data will be released during the US session, followed by the widely-anticipated US FOMC Meeting Minutes.
Gold was ensconced in a tight $16 range yesterday amid a mild trading session. It continues to be supported as long as $1,700 remains intact. Traders need to watch price action around $1,700 and $1,740.
Oil posted another quiet session and it seems buyers have come in around 84.60 yesterday. Since bears have failed to exert more pressure for six days now, we could see a push for the 89.00 level. However any rally could be unsustainable as another report dealt another blow to bullish oil traders. International Energy Agency has slashed its demand forecast, citing oil supply delivery disruption brought about by Superstorm Sandy and the ongoing economic vulnerability in Europe.