Busy Day Ahead For Traders – By Michael Oyebamiji

So many economic data from major economies will be hitting the wires all day today. Looking at the market overnight, Australia reserve Bank highlighted the risk of a strong Currency (Aussie) saying it might complicate economic adjustment and also the risk from china remains an uncertainty. The Bank was a bit optimistic about recovery in the labour market that it might recover sooner than expected. In New Zealand, inflation expectations (QoQ) remain at 1.6% which is the market forecast. In Japan, Industrial production beat market expectation of 3.6% to 3.8%. That is a bit of a relief to Abenomics!

Later today, UK CPI data will be the key data from UK this morning. Inflation is one of the key data which serves as indicator of economic growth and the Bank of England is targeting 2% inflation in their forward guidance policy. A stronger than expected inflation today might send signals regarding when Bank of England might start to raise rate.

Core CPI from the United States will be released todays as well. Market is expecting an inflation figure of 0.2% which is an upward revision from 0.1% from the previous month. Industrial production data will also be hitting the wires from the United States, Market is expecting a rebound from -0.6% to 0.3%. Manufacturing production is also expected at 0.3%, a rebound from -0.3%

Inflation data, coming out from UK and US economy might come stronger than expected because of the rebound in oil price in the last couple of weeks. Fallen oil prices have been one of the major factors responsible for low inflation in the global economy.