In terms of data the main release is euro area inflation for March. We expect it todecline to a new cycle-low of 0.5% y/y mainly due to the timing of Easter. If we areright in our forecast we see the odds slightly in favour of further ECB easing later thisweek.
In Germany retail sales are expected to decline a bit after a very strong reading inJanuary. Consumer confidence has trended upwards during 2013 and points to higherretail sales but there is often some volatility in the series and we expect a smalldecline in February.
In the US Fed’s Yellen will speak today and will have a chance to clarify hercommunication from her Fed press briefing that on the surface appeared hawkish.
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Danske Bank