US REVISED GDP ON DECK FOR WEDNESDAY
The economic calendar picks up on Wednesday with a spate of market-moving releases covering Europe and the United States. Chief among them is the US Commerce Department’s second reading of Q2 GDP.
Action begins at 06:00 GMT with a report on German consumer confidence courtesy of GfK. The consumer confidence index for September is forecast to remain at 10.6, unchanged from August.
At 06:45 GMT, the French government will report on consumer spending for the month of July. Consumption is forecast to have risen 0.1% in July following a similar increase the previous month.
At the same time as the consumption report, the French government will release revised second-quarter GDP numbers. The French economy is forecast to have grown 0.2% in the second quarter.
US government economists will release revised second-quarter growth projections at 12:30 GMT. The world’s largest economy is forecast to have expanded 4% annually between April and June, down slightly from the initial estimate of 4.1%. The report will also include a revised reading of core personal consumption expenditures, the Federal Reserve’s preferred measure of inflation.
At 14:00 GMT, the National Association of Realtors will report on pending home sales for the month of July. The indicator is expected to rise 0.4% compared to June.
Thirty minutes later, the US Energy Information Administration (EIA) will release its weekly crude inventory report for the period ended 24 August. Analysts in a median estimate are expecting crude stockpiles to fall by 522,000 barrels the previous week.
Although Europe’s common currency remains in an uptrend, buyers have run into resistance near 1.1700 – a key psychological threshold. At the time of writing, the EUR/USD exchange rate was trading at 1.1687, where it was down slightly from the previous close. The pair faces two imminent resistance zones: 1.1700 and 1.1730. Blowing past these two levels are needed to sustain the upward trajectory.
Like the euro, cable has also run into resistance recently. The GBP/USD exchange rate is currently holding at 1.2864, where it was down sharply from the intraday high. The pair faces immediate resistance at 1.2928, the high from Tuesday. On the opposite side of the spectrum, immediate support is located at 1.2835, the swing low from Monday.
The dollar-yen exchange rate has been locked in a lateral move over the past four sessions. After successfully crossing the 111.00 handle, the upside has been firmly capped in the 111.40-111.50 region. At the time of writing, USD/JPY was trading at 111.25, where it was little changed. In terms of technical, the pair faces immediate support at 111.00, followed by 111.75, which is the low from 23 July. On the opposite side of the spectrum, immediate resistance is located at 111.45, the high from 8 August.