Developed macro
1. Market sentiment deteriorated overnight amid worries over Eurozone peripheral debt and soft US data
2. US: May housing starts to rebound
3. US: Philly Fed to rebound, but the outlook is uncertain
4. Greek political procrastination and social unrest to weigh further on sentiment
5. Eurozone HICP inflation to be confirmed at 2.7% YoY in May
6. UK retail sales to drop on a Royal Wedding hangover
Interest rate strategy
1. Spanish paper is auctioned into a very nervy market but should be placed reasonably smoothly, if recent history is a guide.
2. Some volatility could come from data flow, though figures today are not headliners for bonds.
FX strategy
1. EUR: Outside day warns of further weakness
1. NOK: Weak trade numbers provide buying opportunity
2. CHF: Record strength persists while policy makers dither
Emerging markets
1. Risk assets to suffer from negative sentiment; rates seen softer
2. RBI to hike by 25bps, providing floor to front-end INR OIS
3. Brazil: market to decipher “sufficiently prolonged period” from COPOM minutes
Click here to read the full report:
http://www.easyforexnews.net/wp-content/uploads/2011/06/WMT_2011-06-16.pdf
CREDIT AGRICOLE
CORPORATE AND INVESTMENT BANK