Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
1. The Loonie In Focus As Canada Releases GDP
Economists forecast Canada’s economic growth as measured by GDP grew 0.4% in the fourth quarter and 2% at an annualized pace. While month-on-month GDP is expected to have to have risen by 0.1% in December.
Traders are eager for an update on Canada’s economy after signs of a slowdown prevailed in recent weeks, denting the prospect of a faster pace of rate hikes.
TD Securities recently said it expects the Bank of Canada to raise rates only twice in 2018, with the next hike expected as late as July, warning that the economy “has clearly cooled” and that the medium-term economic outlook is facing “several domestic headwinds.”
Ahead of the data USD/CAD rose 0.02% to C$1.2835.
2. UK Prime Minister May Takes To The Brexit Stage; Construction Data Eyed
UK Prime Minister, Theresa May is set to deliver a speech Friday, outlining a plan for a new post-Brexit relationship with the EU. Pressure is mounting on May to rethink her so-called redlines – outlined in her 2016 Tory conference speech – which took the option of Britain remaining in the customs union and single market post-Brexit off the table.
The PM’s upcoming speech comes amid fresh fears that UK-EU Brexit talks are set to reach yet another impasse after May rejected the EU’s proposal of a “common regulatory area.”
UK construction data , meanwhile, could offer a much needed distraction for the pound. Economists’ forecasts UK construction purchasing managers' index rose to a reading of 50.5 in February from the 50.2 print a month ago.
The purchasing managers index (PMI) figures are given as a number between 0 and 100. Anything above 50 signals growth, while anything below indicates a contraction in activity. A reading of 50.5 would indicate that the sector is close to contracting.
GBP/USD rose 0.11% to $1.3775.
3. Baker Hughes Rig Count to Add To Rising US Output Fears?
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand after data last week showed the number of oil rigs operating in the US rose by one to 799, the highest level since April 2, 2015.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Crude futures settled lower on Thursday as recent data showing US oil producers continued to ramp up output offset bullish data showing crude output from OPEC fell to a 10-month low in February. The fall in the group’s output was mainly drive by production declines in Venezuela and the United Arab Emirates (UAE).