Today's most important event is the FOMC meeting, which is one of the big meetings with updated projections and a press conference. Very much against consensus, we expect the Fed to stay on hold, as a data-dependent Fed should wait at least one meeting to confirm the recent weakness is only temporary but we admit that the Fed may have painted itself into the corner given the very high expectations of a hike. Instead, we expect a big announcement on how it will proceed with reducing its balance sheet ('quantitative tightening') and signalling a strong likelihood of a July hike. See more details here, FOMC preview: Expectations are high but data do not justify a hike yet , 12 June 2017.
In the US, the CPI inflation print for May is due out, which we estimate fell to 2.0% y/y form 2.2% y/y (core inflation was likely unchanged at 1.9%), so no help from the Fed here.
In the UK, look out for the labour market report due at 10:30 CET.
In Sweden, Prospera inflation expectations are due out.
In Norway, the very strong Regional Network Survey clearly indicates growth is higher than expected, see more Regional Network Survey: Norges Bank to remove rate cut probability , 13 June 2017.
To read the entire report Please click on the pdf File Below