Market Movers
At 9:30 CET the Minutes from the Riksbank rate decision will be released. The question is whether these are as confident on inflation, inflation expectations and the global economic outlook in general as sketched by Mr Ingves at the press conference and which was more or less repeated by Mr Jansson yesterday. It is a balancing act. If they come across as not sufficiently dovish, it will have unintended consequences for the SEK, sending it stronger. The SEK is already 3% stronger than the Riksbank Q3 forecast, something it is not particularly happy about.
On the global scene US inflation numbers are in focus. We project another solid increase in core CPI of 0.2% m/m, which will take annual core inflation to 1.9%. For the headline we expect CPI at 0.0% m/m and 0.3% y/y.
Euro area releases final inflation data for August. These are expected to be unchanged from the preliminary data at 0.2% y/y for headline inflation and 1.0% y/y for core inflation. Euro area labour costs for Q2 are also released. They edged higher in Q1 to 2.2% y/y after being just above 1% for one and a half years.
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