Market movers for the week ahead
Euro area survey indicators are expected to indicate stronger growth. Lending figures should improve and later be boosted by the liquidity from the ECB's QE.
US inflation data will be in focus, as a precondition for a Fed rate hike is confidence that inflation will move back to its 2% objective.
UK and Japanese inflation should decline, but we expect the Bank of England will hike despite low inflation and that Bank of Japan will not step up its easing soon.
Chinese manufacturing PMI will be in focus as there is a substantial gap between the hard economic data and the manufacturing PMI.
Norwegian economic data is in focus as Norges Bank has kept its easing bias by indicating a rate cut in June.
Global macro and market themes
The Fed added some fuel to the stock market. In terms of US yields the increase is delayed - but not cancelled. For EUR/USD it is the hike and not the timing that matters.
In the euro area, the yield curve is flattening more, but we expect it to steepen when flows ebb and fundamentals kick in.
The drop in the USD/CNY eases fear of CNY 'devaluation'.
There have been a number of surprises from the Scandi central banks as the Riksbank eased further, Norges Bank did not cut the policy rate and Danmarks Nationalbank raised banks' current account limit.
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