Economic calendar: PMIs in the spotlight

A few interesting readings are scheduled for release on the final trading day of the week. PMI indices from the euro area and the United States are key points in today’s calendar. Apart from that, CAD may become more volatile in the afternoon as inflation and retail sales data is set to be released.

9:00 am GMT - Euro area, PMI indices for March. The manufacturing PMI gauges moved lowered all around the world during the past 12 months. Europe and China are among the most affected regions as their respective indices dipped into contraction area already. Further deterioration may effectively force ECB to use more stimulus and leave euro depressed. On the other hand, an uptick in the services gauge was spotted in February. Both gauges are expected to remain virtually unchanged in March.  

12:30 pm GMT - Canada, Inflation and retail sales data. Fed stroke dovish tone this week putting any tightening in Canada under question as well. However, inflation has been subdued as of late therefore BoC therefore it is unlikely that we will see any rate hike in the nearby future. Inflation reading for March is expected to show price growth remain at previous 1.4% YoY. On the other hand, rebound is forecasted in retail sales data. Print for January should show an advance of 0.4% MoM after a dip of 0.1% MoM during the holiday season in December.

2:00 pm GMT - US, Existing home sales and PMI indices (1:45 pm GMT). The US PMI indices seldom trigger bigger price moves as investors tend to focus on ISM gauges. Nevertheless, it is wise to follow them as they usually come sometime ahead of ISMs. Preliminary readings for March are expected to show minor bounce higher in manufacturing gauge and slight deterioration in the case of services. Existing homes sales declined throughout 2018 and a strong reading of over 5 million is expected for February.

EURUSD dipped significantly during the first week of March. The main currency pair, however, managed to rebound since and climbed back into the consolidation range. Failure to break above the upper limit of the range earlier this week hints that we may experience more sideways trading. Source: xStation5

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