Market movers ahead
- Next week in the US, we expect focus to be mainly on the annual Jackson Hole Economic Policy Symposium, where Fed Chair Janet Yellen is due to speak.
- In US, we expect an upward correction in the PMI service index for August.
- We expect the consumer confidence figures for August in the euro area to be affected negatively by the rising oil price at the beginning of August and post-Brexit vote uncertainty, although this is diminishing. However, continued solid labour market conditions and resilient business sentiment are likely to pull consumer confidence upwards slightly.
- In Sweden, we expect the strong trend in employment to continue for a few months more, despite the deceleration in growth.
- In Norway, we expect focus to be on the oil investment survey, which we believe could paint a slightly less negative picture for the oil sector.
Global macro and market themes
- Risk sentiment has been supported by positive macro momentum, lower tail risks and monetary easing.
- We see more upside potential for now but, in our view, too high earnings expectations and a potential loss of macro momentum loom.
- Bonds are still supported by QE.
- We expect EUR/USD to be range bound in coming months before moving higher.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.