We expect today’s ECB meeting to be another wait-and-see one without any neweasing measures. MarioDraghi is expected to continue to sound very dovish as inflation in April again wasbelow ECB’s expectations, EUR/USD continues to edge higher and bank lendingremained subdued in March. However, the ECB is expected to refrain to at least Junewhen it will release revised economic forecasts.
Today’s Bank of England (BoE) meeting is expected to be close to a non-eventwith no one expecting any change in either BOE’s target for its asset purchaseprogram or the bank rate. The inflation report next week will be much moreinteresting as it could signal a shift towards an earlier rate hike in light of the recentstrong data.
The data calendar is relatively light today. In Germany the weaker-than-expectedindustrial orders released yesterday suggest downside risk to today’s industrialproduction for March.
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Danske Bank