– Singapore’s inflation unexpectedly eased
– EU summit continues negotiation over budget
– Focus on German Ifo today
What to watch for today
EUR: Focus on Ifo. Our economists are looking for signs of stabilization in the Ifo survey in line with the small upside surprise in the German manufacturing PMI yesterday. For the expectations component, their forecast envisages a modest rise to 93.8 from 93.2 compared to the consensus for a further fall to 93.0. We believe stabilization at these low levels would offer only temporary respite and we continue to see potential for low growth and policy disappointment to weigh on the EUR. We remain short EURUSD in our recommended cash portfolio with a 1.23 target.
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Credit Suisse