The main data releases are retail sales in the UK and existing home sales in the US.The data released so far suggest a substantial weather impact on the housing market inJanuary so there is downside risk even to our expectation of a 3.6% m/m drop inexisting home sales.
In the coming weeks it will be very interesting to see how FOMC-members interpretthe recent US data. Today super hawk Richard Fischer (voter) and James Bullard(dovish, non-voter) will speak. Bullard spoke yesterday and does not appear to believethat recent weak data are enough to adjust the current tapering plan.
Moody’s might announce a rating decision on Spain, while Fitch might make anannouncement about Ireland.
Tomorrow G20 finance ministers and central bank governors will start their two-daymeeting in Sydney, so there will be ample room for comments during the weekend. Itwill most likely be emerging markets against developed markets with the Fed poisedto come under attack from some emerging markets for not taking the impact on therest of the world into consideration in its monetary policy.
Read the full report: FX Daily
Danske Bank