Market movers today
• The main focus will be the release of the Fed minutes from the July FOMC-meeting. The statement from the July meeting was slightly more dovish on the inflation outlook, so it will be interesting to see what caused the change in tone. According to the June minutes half of the FOMC members preferred to end the QE programme this year. It will also be interesting to see if this has changed.
• The data calendar is relatively light. The main release is existing home sales in the US. Mortgage rates in the US have increased markedly, so any signs of softness in the housing market could be an argument for delaying Fed tapering.
• Otherwise attention continues to be on the development in emerging markets. China’s HSBC manufacturing PMI – to be released early tomorrow morning before markets open in Europe – will be very important for overall market sentiment towards emerging markets. We expect a slight improvement in China’s HSBC PMI.
Read the full report: FX Daily
Danske Bank