* The main market driver continues to be the US debt ceiling talks, which are likely to continue to create market volatility until a deal is struck.
* It is a quiet day on the data front. Main release is euro area industrial production for August, which we expect to rise 0.4% m/m, a bit lower than the consensus estimate of 0.8% m/m. Note that markets in Japan, Hong Kong and parts of the US will be closed today due to regional holidays.
* The rest of the week the main releases will be German ZEW (Tuesday), US NAHB housing index (Wednesday) and Chinese data on GDP and industrial production (Friday).
* Euro area finance ministers will meet for the Eurogroup meeting later today. With no new German government in place we do not expect any substantial developments on the major issues such as, for instance, the remaining funding gap in Greece. There will be a press conference after the meeting tonight. On the agenda for tomorrow’s ECOFIN meeting is the Commission-EIB initiative.
Read the full report: FX Daily
Danske Bank