It is a very quiet day on the data front with most important news coming out ofSweden.
Swedish inflation is expected to have remained low in October and is likely to printslightly below market consensus and the Riksbank forecast. That said, recentoutcomes from Norway and Denmark do suggest that risks are skewed to the upside.
Riksbank minutes from the latest policy meeting, when the Riksbank cut the reporate to 0%, are published. First and foremost, we will look to the discussion on the useof unconventional monetary policies should inflation fail to materialise – i.e. the what,when, where and how of the Zero Interest Rate Policy in Sweden.
Finally, focus in Sweden will be on the outcome of the Financial Stability Councilmeeting (10:00-12:00 CET) and the Swedish FSA’s press conference (14:00 CET).There is a high possibility of new policy measures to temper household credit growth,which could restrain household consumption going forward.
In the US, the NFIB small business optimism index is expected to continue itssideways movement around 95.5 where it has been since April.
Otherwise, focus is likely to remain on the developments in Ukraine.
Read the full report: FX Daily