We get a quiet start to a very busy week. Only release of interest today is the USpending home sales for March, which normally leads existing home sales by one totwo months. It will give more information about the current slowdown in US housingand how much rebound we may see following the bad weather period. We look for asmall rise of 0.4% m/m.
The rest of the week is packed with key events. In the US we have FOMC meeting(Wednesday), ISM manufacturing (Thursday) and non-farm payrolls (Friday). Wegenerally see upside risks to both ISM and non-farm payrolls and for the Fed to taperanother USD10bn and nod to the latest improvement in data. The FOMC meeting iswithout press conference and new projections this time but Fed chairman Janet Yellenspeaks on Thursday, the day after the meeting.
In the euro-area the highlight of the week will be the first estimate for inflation inApril (Wednesday), which is expected to increase to 0.8% y/y from the low print of0.5% y/y in March.
In the Scandi markets focus today will be on Swedish retail sales and trade balancedata.
Read the full report: FX Daily
Danske Bank