Market movers today
• Focus continues to be on the emerging market sell-off and the possibility of US military intervention in Syria.
• On the data front, euro-area M3 growth is expected to decline from 2.3% y/y to 2.0% y/y. Monthly loan flows will also be announced. These have been very weak throughout 2013, indicating that easy monetary policy is still not feeding through to credit growth.
• US pending home sales for July will be quite interesting as they serve as a good leading indicator for existing home sales and give the first indication of how sales activity is responding to higher mortgage rates. Existing home sales were quite strong in July, whereas new home sales dropped sharply, thus providing mixed signals.
• Bank of England governor, Mark Carney, will be given a speech today (text expected to be released 13:45 CET). We will be looking for comments on the market pricing following the announcement of forward guidance linked to the UK unemployment rate, as the market is expecting the Bank rate to be increased around one and a half year before the formally MPC forecasts the 7% threshold to be met.
• Swedish confidence data due for releas
Read the full report: FX Daily
Danske Bank