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European FX Outlook: Boring day ahead with Swiss inflation headlining

What you need to know before markets open:

  • The US President Trump says he will not give up his push on tariffs implementation although he is facing serious international pressure.
  • Winners of the Italian parliamentary elections -Italy's League and 5-Star Movement vie for power after the inconclusive vote.
  • Watch policymakers from the US, the UK and Australia deliver public speeches on Tuesday.

Tuesday’s market moving events

  • Australian retail sales rose less than expected by 0.1% m/m in January.
  • The RBA decided to hold the cash rate steady at 1.5% in March monetary policy meeting with the RBA retaining the neutral bias as it sounds less upbeat on the economy.
  • The Swiss CPI is expected to rise 0.2% m/m while increasing 0.5% y/y in February.
  • The New York Federal Reserve President William Dudley is set to participate in a breakfast roundtable with USVI non-profit leaders and later discuss hurricanes' impact on the local economy with USVI Governor Kenneth Mapp and business community leaders, in St. Thomas, U.S. Virgin Islands on 12:30 GMT.
  • The US factory orders are anticipated to fall -1.3% m/m in January.
  • Ivey PMI for Canada is seen rising to 56.3 in February.
  • The Bank of England chief economist Andy Haldane speaks at the Royal Society for the Encouragement of Arts, Manufactures, and Commerce, in London at 18:15 GMT.
  • The RBA Governor Philip Lowe is giving a speech titled "The Changing Nature of Investment" at the Australian Finance Review Business Summit, in Sydney at 21:35 GMT.
  • The Fed Governor Lael Brainard is set to deliver a speech titled "Economic and Monetary Policy Outlook" at New York University's Money Marketeers event at 22:30 GMT. 

Major market movers

  • The CAD was the loser of the day on Monday with NAFTA trade agreement and the US President Trump pushing on imposing trade tariffs on imported iron and aluminum weighing on Loonie.
  • The currency market is set to follow the sentiment in lack of fundamental news with key policymakers delivering public speeches on Tuesday. 

Monday’s macro summary

  • Caixin services PMI for February decelerated to 54.2 in February reading.
  • The German services PMI dwelled at 55.3 in February, meeting the market estimate.
  • The Eurozone composite PMI tracking manufacturing and services together decelerated to 57.2 in February.
  • The UK services PMI rose to 54.5 in February, beating the market forecast.
  • The Eurozone retail sales fell -0.1% m/m and 2.3% y/y in January.
  • The ISM non-manufacturing PMI rose slightly above expectations at 59.5 in February. 

Author

Mario Blascak, PhD

Mario Blascak, PhD

Independent Analyst

Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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