Euro inflation will likely drop to a new cycle low of 0.6% in February, whichadds pressure on the ECB ahead of the meeting next week. Yesterday Germaninflation was weaker than expected and as a result we have lowered our forecast forthe euro. The unemployment rate in the euro area is set to remain at 12%.
ECB’s Sabine Lautenschlaeger gets her first opportunity to express her view asECB board member as she speaks on financial stability and the role of central banks.
In the US Q4 GDP is expected to be revised down to 2.4% q/q AR from 3.2% q/qAR due to a lowering of personal consumption while the GDP price deflator and thecore PCE are expected to remain unchanged.
Pending home sales are expected to show a slight improvement in January.University of Michigan confidence and US Chicago PMI are also released.
Fed’s Stein, Kockerlakota, Evans and Plosser speak today. The event includes adiscussion on communication strategies under unconventional monetary policy.
In the Scandi markets, Swedish and Danish GDP and Norwegian unemploymentand retail sales are out, see more on page 2.
Read the full report: FX Daily
Danske Bank