We expect the German financial ZEW expectations to break the 10-month streak ofdeclines and increase to 0.0 in November. The Sentix expectations increased inNovember and since late October the German DAX has risen around 7.5%, while themarket’s expectation of further ECB action has been fuelled by an official balancesheet target. However, there is downside risk as activity is still weak in Germany.
In the US the NAHB Housing Market Index is expected to increase slightly, althoughwe have seen some soft signs for the housing market recently, especially a slowdownin housing prices.
ECB’s executive board member Lautenschlaeger is scheduled to speak today and asshe is considered hawkish, her comments could cause a negative market reaction afterdovish comments from prominent ECB members yesterday. Fed member Kocherlakota also speaks today but he is verydovish and his comments matter less.
In Denmark the refinancing auctions continue and in Sweden governor Ingves andvice governor Jansson will speak.
Read the full report: FX Daily