In the data calendar the main event is the release of IFO-business climate. We expect a decline in business climate to 110.8 from 111.3 but yesterday's weak manufacturing and services PMIs for Germany suggest there is downside risk to today's IFO.
In the US we expect conference board consumer confidence to have improved slightly in March mainly on the back of a continued strong performance in the US stock market. New homes sales for February are expected to have slowed slightly on the back of a strong rebound in January but the overall message continues to be that it is difficult to judge the strength of the US housing market due to the weather-related impact.
We also have a number of important speeches in the calendar. ECB president Mario Draghi is scheduled to give a lecture in Paris at 17:00 CET and Bundesbank president Jens Weidmann will hold a press briefing in Berlin at 17:30 CET.
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