Only tier-2 data on the global agenda today. UK retail sales are expected to havestrengthened again in April after soft spending in March. UK consumption issupported by strong job growth and robust gains in house prices. Minutes from thelatest MPC-meeting are also due for release today.
In the afternoon preliminary euro-area consumer confidence for May is released andis expected to rise further to a seven-year high.
Tonight Fed will be in focus as Yellen, Kocherlakota and George will speak. Minutesfrom the latest FOMC meeting are also published but we do not expect any majornew information as there were only very few changes to the statement at the meetinglast month. We believe market pricing is looking stretched following the recentdecline in money market rates and yields in the short end. The market is now pricingthe Fed funds rate to be 1.6% at the end of 2016 versus Fed’s own median projectionof 2.25%
Read the full report: FX Daily
Danske Bank