Today, the August reading of the German IFO is released (9am BST). The lift in the German PMIs in August suggest further improvement in the IFO is likely. The ECB’s Coeure speaks today (12pm BST). Various ECB officials speaking this week may acknowledge the recent economic improvement, but they are also likely to reinforce the current policy of forward guidance towards low or lower interest rates in an attempt to rein in the rising Eurozone money market rates, which pose downside risks to the Eurozone economic recovery.
Yesterday, Bank of England (BoE) Monetary Policy Committee (MPC) member Charles Bean stated that he is “a little bit” surprised by the market reaction to the BoE’s forward guidance, further asset purchases are “always an option on the table” and the BoE has given a “clear signal” that a rate rise is not imminent. The key focus this week will be the first on the record speech by BoE Governor Carney (Wednesday).
Read the full report: Market Research
Commonwealth Bank