Developed macro
1. In a day almost devoid of European data, the focus will be on EU/ECB speakers once again, as dissensions persist over a possible Greek debt “re-profiling”.
2. The BOJ is expected to stay on hold.
Interest rate strategy
1. Peripheral funding schedule completed this week, but sovereign spreads to remain under widening pressure
2. Curve flattening moderation likely, but overall trend to remain
FX strategy
1. EUR: Policy uncertainty maintains range.
2. AUD: Softer inflation expectations provide some policy maker relief.
3. CAD: Canadian CPI poses further currency risk.
Emerging markets
1. Taiwan Q1 GDP revised upward, exports orders should have been strong
2. Poland: Core inflation likely up – further rate hikes to come
3. Brazil: still strong inflation to support short term rates
Commodity markets
1. Gold capped at $1,500/oz; base metals lack follow-through buying interest.
Credit Agricole Corporate and Investment Bank