Key news
– US equities are hovering around all-time highs
– Core yields are grinding higher while spread compression continues in peripherals
– Focus today on Fed speakers and in Scandinavia on Swedish unemployment figures
Markets overnight
It has been a calm session overnight with comments from the Fed’s Evans as the only market relevant news. Evans (voter, dove) said last night that “I’m optimistic that the labour market has been doing much, much better and that unemployment is going to continue to go down,” and that “currently we have the appropriate monetary policy in place.” He also said that “he has tried to resist talking about Fed tapering”. Tonight, the Fed’s Bullard (voter, dove) and Dudley (voter, dove) will be speaking and tomorrow we have both the release of the FOMC minutes and Bernanke speaking. The US treasury market will be sensitive to any signals on the timing of a potential QE tapering. Last week the Fed’s Williams suggested that the Fed could reduce its purchases as early as this summer.
Click here to read the full report: FX Daily
Danske Bank