Focus will be on the US ISM report. Last month's report came out very strong, reaching a three-year high level of 57.1. Comments were decent, although a weak European market and the geopolitical tension present some risk. On the other hand, a very high order-inventory balance suggests that the ISM index could maintain its high level. Overall, we expect the ISM to adjust slightly downward to 56.7, which is still a very high level.
Danmarks Nationalbank (DN) is set to publish August currency reserve figures, which will be particularly interesting given the recent decline in EUR/DKK below 7.45 - a level where we expect DN to start to react in order to curb krone appreciation.
Otherwise we have a thin calendar and markets could be in a wait-and-see mode ahead of the ECB meeting on Thursday and the US labour market report on Friday.
To Read the Entire Report Please Click on the pdf File Below