Today, focus will be mainly on the FOMC meeting in the US, with the accompanying policy announcement at 20:00 CET. We expect the Fed to maintain the fed funds target range of 0.50-0.75% in line with market pricing and consensus. At the December meeting, the Fed signalled that the economic outlook was 'uncertain' due to 'Trumponomics' but that 'almost all' FOMC members thought there were upside risks to their growth forecasts (and hence the number of Fed hikes) due to the expectations of more expansionary fiscal policy. In line with markets, we expect the Fed to hike twice this year (in June and December), with risks skewed towards a third hike. Continued strong economic data and more information about Trump's fiscal policy may trigger the Fed to hike earlier than June. See also FOMC Preview, Fed is still waiting for news on 'Trumponomics' , 27 January 2017.
In the US, ISM manufacturing data for January is also due to be released. We expect a marginal move higher to 55.0 from 54.5 in December.
Danish housing prices and Swedish PMI manufacturing data are due out.
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