Central Bank Meetings Will Dominate The Week Ahead

Published 03/16/2015, 04:14 AM
Updated 05/14/2017, 06:45 AM

Market movers today

With no major economic data in the calendar in Europe focus will be on ECB's publication of last week's QE purchases at 15:45 CET. ECB president Mario Draghi is scheduled to speak at 19:45 CET in connection with a conference titled 'Reality check - How to foster growth in the new regulatory environment' in Frankfurt. ECB governing council member Sabine Lautenschlaeger will also speak at 20:10 CET.

We have a relatively light data calendar with focus mainly on US data. We expect US industrial production to have been relatively weak in February with manufacturing production expected to have declined 0.1% m/m. The NAHB housing market indicator for March will also be interesting as it should be less affected by the bad weather that weighed substantially on other housing market indicators in February and early March. We expect a slight improvement in the NAHB indicator to 56.0 in March from 55.0 in February.

Central bank meetings will dominate the week ahead. Fed is expected to remove 'patient' from its statement and signal data-dependency for timing on first rate hike on Wednesday. Bank of Japan is not expected to announce new easing measures tomorrow morning and on Thursday the Swiss central bank will probably also refrain from cutting its leading interest rate further into negative territory. However, in Scandinavia we expect Norges Bank to cut by 25bp on Thursday.

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