– European FX leads modest rally vs the USD, Asian equities mixed
– Bank of Japan kept policy on hold as expected
– China’s export growth higher than expected, imports disappointed
– France’s industrial output likely rose in February
What to watch for today
EUR: French industrial production likely rose. French industrial production is expected to rise 0.3%mom in February while manufacturing production is likely to stay flat on the month. We continue to look for EUR weakness, driven by expectations of steady accommodative policy in Europe vis-à-vis rising expectations of a hawkish shift by the FOMC.
SEK: Output growth expected to slow. Our economists are looking for a 1.0% mom drop in February industrial production following a strong 3.6% mom rise in January. However, on a 3m/3m basis, industrial production should rise for the first time since September last year.
CZK: Inflation in focus. Inflation is expected to increase to 3.9%yoy from 3.7%yoy. Higher import prices and the previous VAT hike are keeping the inflation rate well above target. Nevertheless, we expect no impact on the central bank’s policy given weak growth and continuing fiscal consolidation.
Click here to read the full report: European FX Daily
Credit Suisse
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