Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
In September German ZEW economic sentiment rises more than expected
In September, German economic sentiment went up much more than expected spurring optimism as for the cornerstone of the euro zone economy, as industry data disclosed on Tuesday.
The ZEW Centre for Economic Research informed that its index of German economic sentiment went up to 17.0 in September from August’s outcome of 10.0. Financial experts had expected the index to tack on to 12.5 in September.
By the way, on the index, an outcome above 0.0 stands for optimism, while a level below 0.0 drops a hint at pessimism.
This month the Current Conditions Index suddenly leapt to 87.9 from 86.7 in August versus expectations for a moderate dip to 86.6.
In September, the index of euro zone economic sentiment inched up to 31.7 from 29.3 last month.
After the report, the currency pair EUR/USD showed 1.1985 versus the previous outcome of 1.1981 ahead of the publication of the data. As for EUR/GBP, it leapt 0.8889 from 0.8884.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.