Tomorrow’s session should be quite eventful after today’s rebound.
The overnight session will turn the eyes towards the German Final GDP for Q3, expected at 0%, and should help to see where the overall Euro-economy is heading.
Almost no cuts are priced in for the ECB, but any major downward surprise in Europe’s largest economy could change the situation.
This will be followed by a couple of ECB speeches from ECB’s Escrivá (5:00 A.M. ET) and Sleijpen (5:30 A.M. ET).
The US Session should be even more active however with a slate of US releases that will quench the thirst for data after a drought, even if these releases will be past news (September data).
The first will be the ADP weekly Private labor data (8:15 A.M. ET), which surprised markets at its first release. It will be interesting to see how Markets react to it going forward.
For the rest, Expect Retail Sales and PPI data (8:30 A.M. ET) which could be major movers, as the official statistics agencies finally release the September numbers on wholesale inflation and consumer spending.
US Housing data will follow suit at 10:00 A.M. ET as investors look to confirm a potential rebound in both the Consumer Confidence and the rate-sensitive Pending Home Sales after weeks of weakening.
The rest of the day could be calm as many traders are out for the Thanksgiving week, a traditionally slow but green week in Markets.
The evening will however be the most important:
Inflation data from Australia will heat up the evening session at 20:30 ET before the RBNZ Rate decision follows suit at 22:00 ET. A 25 bps cut is expected but not fully priced in, so expect some surprise and volatility for the Kiwi dollar around the rate and policy review.