Look ahead 17/11/23: GBP on UK retail sales; US building permits & housing starts; Baker Hughes
Sterling is set to be in focus as investors await the latest retail sales print after data showed British inflation cooled at its fastest pace in more than three decades.
US housing sector data could give traders an indication of whether confidence is coming back to the market. Plus, more supply side oil data in the form of the Baker Hughes oil rig count.
(AI Video Summary)
UK market news
The UK is expecting retail sales numbers for November to show a slight increase of 0.3% compared to the previous month. However, the British pound has been experiencing some ups and downs recently. An important factor affecting this is the high inflation rate in October, which was the highest in over thirty years. This has led to expectations that the Bank of England will lower interest rates by the middle of next year. One key indicator of inflation, the consumer price index (CPI), rose by 4.6% in the twelve months leading up to October, but that was a decrease from the previous month's 6.7% increase.
US market news
In the US, inflation has also had a significant impact, resulting in weaker-than-expected consumer price readings. On Friday, the focus will be on building permits, housing stocks, and the Baker Hughes oil rig count. Oil prices have been going through some ups and downs recently, with both US crude oil and Brent crude showing a downward trend. The consumption and demand in the US and China, as well as the anticipated announcement from OPEC plus outlook, will greatly influence the direction of oil prices.
WTI crude oil news
Looking into the supply side of things, the front-month contract for WTI crude (a type of oil) has been trading at a price lower than the subsequent month's contract, which indicates a pattern called contango. This suggests that investors are expecting oil prices to rise in the future.
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