Today’s most interesting event are the minutes from the FOMC meeting on 29October, when the Fed turned more hawkish on the labour market saying that theunderutilisation of labour resources was diminishing. Interestingly, hawks CharlesPlosser and Richard Fisher did not dissent, even though the forward guidance was stillin the statement. Fisher had previously refrained from dissenting, reasoning that thediscussion was moving in his direction. It might suggest that the minutes will reflect ahawkish twist.
Minutes from the latest UK MPC meeting are also due for release and are likely to bedovish. Data in the UK have generally been soft recently and the latest inflation reportfrom Bank of England showed a risk that inflation could fall below 1% within sixmonths. Focus will be on how the hawks see the latest development.
In the US building permits and housing starts are released. Yesterday’s NAHBhousing index revealed that it increased to 58 in November from 54 in October andwas above 53 for the fourth month in a row. However, the trend in housing starts hasbeen soft compared to the NAHB survey.
In Denmark focus continues to be on the refinancing auctions.
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