Market movers today: ECB Executive Board member Jörg Asmussen and Bundesbank President Jens Weidmann testify at Germany's Federal Constitutional Court in Karlsruhe on ECB's OMT programme today and tomorrow. If the Federal Constitutional Court declares the OMT programme to be unlawful, the market reaction would be very negative and the debt crisis would probably reignite. We think this outcome is unlikely. Furthermore, a ruling is not expected before the German elections in September.
Bank of Japan Governor Kuroda holds a press conference after the announcement of the rate decision earlier this morning. The conference could attract some market attention even though the most interesting part may be over - se below.
Swedish inflation data are published at 09:30 CET. We think April marked the low in this inflation cycle and forecast a two tenths rise in CPI and CPIF between April and May, taking y/y inflation to -0.2% and +0.8% respectively.
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