Focus continues to be on developments in the Ukraine/Russia conflict where theoutcome is still unclear. Unless we see an escalation markets may lose interest soon,though, and focus on other things.
On the data front German ZEW is expected to decline for the second month in a row.However, levels are still high and point to robust growth.
In the US attention will be on CPI inflation and housing starts. Headline inflation isexpected to decline to 1.2% y/y from 1.6% y/y in January, mostly due to base effects,though. Core inflation should rise 0.1% m/m leaving the annual rate unchanged at1.6%. Housing starts for February are expected to show a slight rebound following thesignificant drop of 16% in January. We see a slight upside risk to the consensusestimate of 3.5%.
Read the full report: FX Daily
Danske Bank