Tomorrow's Data Docket: What to Watch For

It's a pretty eventful day tomorrow. Traders in the US will wake up to find the results of the Spanish bill auctions, in the 3- and 6-month maturities. A big event tomorrow will be the release of the Bank of England's Inflation Letter. For those who don't know, whenever the inflation rate deviates by more than 1% from the target, the BOE must write a letter to the Chancellor of the Exchequer explaining what is being done to address the problem. Even though it doesn't necessarily affect US stocks directly, there are implications in terms of policy hints. The BOE could use this letter to cite their opinions of QE both in the UK and internationally and how it has affected the global economy. This will be most important to FX traders, but if the BOE uses the letter as a chance to attack Europe, it could bring back fears of contagion across the Eurozone.

At 10 am est, there is a flurry of data. The most important data point to be released at 10 is the existing home sales number. The market is looking for a reading of 4.6 million as compared to the prior month's reading of 4.48 million. Housing data has been volatile the last few years, but the market still wants a good number to keep today's rally going. Also at 10 am is the release of the Richmond Fed Manufacturing Index. Some people claim to not give credence to these regional releases, however I personally believe that in the commentary of the release is great insight into the opinions of Fed officials. The market is expecting a reading of 10 following last month's 14. There is also a 4-week bill auction and a 2-year note auction later in the day.