Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
Eurozone top-tier macro data on tap
Nearly a week after the European Central Bank kept interest rates unchanged and trimmed its monthly bond purchases to €30 billion, investors look ahead to release of Eurozone economic growth and inflation data due Tuesday.
The initial reading of Eurozone inflation for October is expected to come in at an annualised rate of 1.5%, unchanged from September.
Inflation has trailed the European Central Bank’s target, of below, but close to, 2% over the medium term.
Eurozone third-quarter economic growth, measured by gross domestic product (GDP), is also expected to remain steady at 2.1% following a similar rate of growth in the second quarter.
EUR/USD rose 0.32% to $1.1644.
U.S. macro data in focus
The release of consumer confidence and manufacturing data due Tuesday could offer fresh direct for the dollar ahead of the Federal Reserve’s two-day policy meeting which gets underway on Tuesday.
Economists forecast the Chicago Purchasing Managers' Index (PMI) to show manufacturing growth slowed in October to a reading of 61, cooler than the 65.2 reading a month ago.
On the consumer confidence front, economists expect the Conference Board’s consumer confidence gauge rose to 121.0 in October from 119.8 in September.
Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.
The U.S. dollar index, fell by 0.35% to 94.39 on Monday after data showed the pace of inflation continued to lag the Federal Reserve’s target of 2%.
An update on Canada’s economic growth outlook
Canada will release economic growth data for August on Tuesday which could offer traders an insight into the health of Canadian economy after growth unexpectedly dipped in July.
Economists’ expect the data to show Canadian GDP grew at 0.1% in August.
Traders are likely to turn their attention to monetary policy later during the session as Bank of Canada governor Stephen Poloz is slated to deliver a speech.
Following the Bank of Canada’s decision to stand pat on interest rates last week, Poloz said a lot of things need to come together before the bank is confident it's time for another interest rate increase.
Ahead of the data USD/CAD traded at C$1.2826, up 0.13%.