•
Disappointing data reassures on rates, fuels
search for carry
– Eurozone
industrial production misses expectations
– UK wage
growth turns negative, Bank of England slashes forecast for wages in 2014
– US retail
sales disappoint, economists revise down forecasts for Q3 GDP
– US Fed
Funds rate expectations and BoE rate expectations decline
•
Stock markets gain, EM currencies rise in
“risk on” atmosphere
– Lower
rate expectations encourage equity bulls, fuel search for carry
– EM
currencies likely to do well in this kind of environment
•
EUR/USD relatively volatile but 1.3330 bottom
holds
•
Today:
– Eurozone: Eurozone
Q2 GDP data: Germany GDP expected to contract, France to continue to
stagnate, Eurozone as a whole to stagnate. Could be EUR-negative. ECB quarterly
Survey of Professional Forecasters will show what the consensus for Eurozone
growth is (before these figures were released). Final Eurozone CPI for June due
out
– US: Initial
jobless claims for week to 9 Aug expected to increase marginally.
No comments:
Post a Comment