German trade data for August are due for release this morning and focus will be onwhether the solid increase of 4.8% m/m in exports in July marked the bottom. Theimprovement in exports supported the case that some of the weakness in H1 waspartly due to weak activity in China and the US in Q1 and a strong currency but moredata are still needed for a final conclusion.
In the UK we expect the Bank of England to keep both interest rates and its assetpurchase target unchanged. This is fully in line with the consensus view in the marketand should not be a big market mover.
ECB President Draghi speaks on the latest developments in Europe and in globalcentral banking. Although QE is not just around the corner, there is still a fairly highprobability that it will come and focus will be on comments related to the latest easingmeasures, the expected increase in the ECB’s balance sheet and lower marketinflation expectations.
Fed’s Bullard (non-voter, hawkish), Fischer (voter, neutral) and Williams (non-voter,dovish) all speak today. US initial jobless claims, which point to a robust labourmarket, are due for release today.
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