American FX Outlook: It’s all about PPI and US taxes today

What you need to know

• The US dollar is mixed against the majors.  
• The Eurozone GDP growth reached solid 0.6% q/q while rising 2.5% y/y with Germany strongly supporting the growth.
• The ECB communication conference headlining world’s major central bankers is not getting much market attention.
• The US tax reform is overshadowing monetary policy at the moment the House possibly moving toward a vote later this week.

Tuesday’s market moving events

• Fed´s Janet Yellen, ECB's Mario Draghi, BoJ's Haruhiko Kuroda and BoE's Mark Carney are set to speak at the panel discussion titled “At the heart of policy: challenges and opportunities of central bank communication” at the Central Bank Communications Conference hosted by the ECB, in Frankfurt started at 10:00 GMT.
• The US producer price index (PPI) is expected to rise 0.1% m/m while rising 2.4% y/y in October.
• The Bank of England MPC member Jon Cunliffe is speaking at the Oxford Economics Society at 17:30 GMT.

Major market movers

• EUR/USD is the winner of the day after very solid GDP growth in Germany and the Eurozone.
• The US Dollar is mixed on Tuesday losing steam against EUR while Brexit related risks weigh on GBP.

Earlier in Asia/Europe

• German Q3 GDP rose 0.8% q/q while rising 2.3% y/y, coming in better than expected.
• German CPI decelerated to 1.6% y/y in October.
• Chicago Fed president Charles Evans said that for any new policies to succeed, Fed must deliver on current 2% inflation target. Evans also called for new policy approach to deal with future bouts of zero interest rates with price-level targeting may be a good way to go, but needs more study.
• Italy’s Q3 GDP increased 1.8% y/y compared to 1.5% y/y in Q2.
• ECB's Daniele Nouy said the clock is ticking for banks looking to leave the UK after Brexit, and the affected banks have to move quickly.
• Dallas Fed president Robert Kaplan said for the Financial Times that he is “actively considering” December rate hike.
• The UK CPI remained flat on a monthly basis while rising 3.0% y/y in October, falling short of market expectations and pairing the peak from April 2012. That means that the BoE Governor Mark Carney does not have to write a letter to the Chancellor to explain the overshoot, which is not more than one percentage point.
• The Eurozone GDP rose 0.6% q/q while rising 2.5% y/y in Q3.
• German ZEW investors sentiment rose to 18.7 in November compared to 17.6 in the previous month.
• The Eurozone industrial production fell -0.6% m/m while rising 3.3% y/y in September.
• The ECB communication conference hosting central banking superstars like ECB president Draghi, Federal Reserve chair Yellen, BoE Governor Carney, and BoJ Governor Kuroda is not getting much market response.
   

Advertisement
2017 Trader of the Year is back! Don't miss the opportunity to win more than $12.000 in prizes!