German ZEW is expected to rise slightly from an already high level. This will underpin the picture of a strengthening growth picture in Germany as also indicated by German PMI and IFO.
US inflation data will likely show another rise of 0.1% m/m in core CPI, which translates to a rise of 1.2% y/y. CPI is not the Fed's preferred inflation number. It uses core PCE as its primary inflation gauge, but given that inflation is quite far from the Fed's 2% target, some members are expressing concern about it and it is one factor that would speak in favour of delaying tapering.
US NAHB housing survey is expected to be flat at 54 after having weakened somewhat in the past 3-4 months. However, other housing data such as building permits and new home sales have recovered lately and we should as a minimum see NAHB stabilise today.
The Riksbank rate decision will take centre stage in the Scandi markets. We expect a cut by 25bp to 0.75%, accompanied by softer repo rate forecasts.
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