Market movers today
• Euro area Sentix investor confidence will give a first impression of market sentiment in June. We expect a continuation of the signs given by last week’s PMIs that the worse may be over in terms of economic recession in the euro area.
• In the US session, Fed speeches are still being scrutinised for signs of an imminent scaling-down of the Fed’s asset purchases after the May job report released on Friday afternoon left timing of QE tapering open. The Fed’s Bullard, who is considered to be dovish, will speak.
• The Bank of Japan (BoJ) has started its two-day monetary meeting and will announce its decision early tomorrow morning. BoJ will without doubt discuss a possible response to the recent volatility in financial markets. One option is to extend the eligible maturity of its fixed rate operation from one year to two years to anchor the short end of the yield curve. The target for expansion of the monetary base is expected to stay at JPY60-70trn annually.
• We expect Norwegian inflation to have moderated in May in line with Norges Bank’s projections and Danish CPI to tick slightly higher. We look for a correction in Swedish orders in May
Read the full report: FX Daily
Danske Bank