Focus will be on the US ISM report. Last month’s report came out very strong,reaching a three-year high level of 57.1. Comments were decent, although a weakEuropean market and the geopolitical tension present some risk. On the other hand, avery high order-inventory balance suggests that the ISM index could maintain its highlevel. Overall, we expect the ISM to adjust slightly downward to 56.7, which is still avery high level.
Danmarks Nationalbank (DN) is set to publish August currency reserve figures, whichwill be particularly interesting given the recent decline in EUR/DKK below 7.45 – alevel where we expect DN to start to react in order to curb krone appreciation. Formore on Scandi markets see page 2.
Otherwise we have a thin calendar and markets could be in a wait-and-see modeahead of the ECB meeting on Thursday and the US labour market report on Friday.
Read the full report: FX Daily