In the data calendar the main events are the ZEW indicator in Germany, CPI inthe UK and the NAHB housing market index and Empire. In line with ourexpectations for the PMIs on Thursday we expect ZEW to move broadly sideways.
ECB chief economist Peter Praet speaks at 12:20 and it will be interesting to see ifhe has anything to say about ECB’s 2016 inflation forecast, even though it is not themain topic of the ‘fixing finance’ panel discussion.
The Turkish central bank is expected to keep its leading interest ratesunchanged in connection with today’s interest rate announcement at 13:00 CET. Therecent appreciation of TRY has removed the pressure for additional rate hikes buthigher inflation makes it difficult to cut interest rates at the current juncture. TheHungarian central bank is expected to continue its policy of ‘baby step’ interestrate cuts.
The crude oil market will keep an eye on the negotiations about the Iran Nuclearprogramme between Iran and the so-called P5+1 that will resume in Geneva today
Despite our downbeat view on inflation in Sweden in 2014, we prefer being neutralahead of today’s inflation data due to some unpredictability as a result of to the reweightingof consumer prices.
Read the full report: FX Daily
Danske Bank