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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Wednesday kicks off with the publication French industrial production data at 0745GMT. In the North Americas, the release of US inflation figures at 1330 will be closely eyed before the attention shifts to the BOC's interest rate decision at 1500GMT.
French industrial production forecast to rebound
Industrial output is expected to rebound to 0.5% in January following December's 0.8% decline. December's decrease was mainly driven by a 30%-drop in output of coke and refined petroleum products due to the shutdown of several refineries because of strikes. Compared to February industrial output was still 4.9% lower in December. Survey evidence signals an ongoing recovery in the sector. France's manufacturing PMI rose significantly in February and signals growth in the manufacturing sector. Similarly, French business climate in the manufacturing sector improved further, although the indicator remains below the pre-crisis level.
US inflation seen slightly higher
U.S. CPI likely advanced 0.4% in February following a 0.3% increase in January, according to Bloomberg, the highest since July. Excluding food and energy, CPI is forecast to increase 0.2% after a flat reading in January. Meanwhile, annual inflation rose by 1.4% in January and markets look for an acceleration to 1.7% in February. Survey evidence is in line with an uptick of inflation. The IHS composite PMI noted an increase in output charges, which was the second steepest on record.
Source: US Bureau of Labor Statistics
BOC interest rate likely unchanged
The Bank of Canada on Wednesday may signal another taper of asset purchases is coming at its April meeting, some investors say, while keeping QE steady for now and stressing that the economy needs time to rebound and pull inflation to target even after some recent gains.
Policymakers will hold the overnight target interest rate at 0.25% in a decision due at 10am EST, according to all 15 economists surveyed by MNI. All nine economists who made a prediction said the pace of asset purchases will continue at a minimum CAD4 billion a week.
The events calendar remains quiet on Wednesday. The only event scheduled is ECB's Edouard Fernandez-Bollo participating in an online panel.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.