Key news
– Slightly positive sentiment this morning as strong Japanese machinery orders partly offset yesterday’s soft US data.
– Fed dove Williams says asset purchases could be scaled down as soon as this summer.
– Focus today on US consumer confidence and speeches by ECB board members.
Markets Overnight
The main market mover overnight was the weaker-than-expected US data released yesterday. The jump in the weekly initial unemployment claims suggests that the US labour market continues to improve, albeit not as fast as hoped after the sharp drop in the previous week. In addition, subdued inflation in the US continues to give Fed considerable flexibility. Overnight sentiment in the market was aided by the release of better-than-expected machinery orders in Japan.
Click here to read the full report: FX Daily
Danske Bank