Market Movers

  • In the euro area the most important event today is the German Ifo sentiment for May. The German surveys so far released for May including yesterdays PMIs have been softer suggesting that German growth is again cooling a bit. This should also be evident in today’s Ifo business climate, which we expect to have declined a bit more than the consensus estimate in May.

  • In the US the attention will mainly be on consumer prices for April. Focus should mainly be on core inflation, which has actually stabilised above 1.5% y/y in recent months. With at least some wage measures showing signs of a moderate pick-up in wage growth, Fed is probably less concerned about undershooting its inflation objective.

  • There is a number of important central bank speeches in the calendar today. ECB president Mario Draghi will address the ECB forum on Central Banking at 10:00 CET and ECB chief economist Peter Praet will chair an academic session on Unemployment and Inflation. It seems unlikely that Draghi and Praet will cover the operational issues in the QE programme that have been in focus in the financial markets in the past week. US Fed chairwoman Janet Yellen will this evening speak about the outlook for the US economy. She will probably repeat the message from Wednesday’s FOMC minutes that the slowdown in Q1 was most likely temporary but because of uncertainty it is difficult to give more precise guidance on the first hike except it is unlikely to be in June.


Selected Market News

Bank of Japan kept its target for the annual pace of increase in the monetary base unchanged at JPY80trn and thus refrained from adding further stimulus to the economy. Following two quarters of economic growth the central bank is looking for this positive spiral to pave the way for a further recovery of the economy and eventually push inflation back towards its target.

Negotiations about a solution to Greece’s debt woes yesterday between Germany, France and Greece ended without any clear indications that a deal to unlock bailout funds to Greece is close. Both sides noted that the talks were constructive and that significant progress had been made although issues remain.

The oil price inched back above the USD66/bbl level yesterday and thus looks to be anchored in the USD65-68/bbl range at the moment. Declining US inventories are supporting a higher oil price but abundant, more costly reserves ready to be produced at a higher price are limiting the upside potential for oil.

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


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, awaits Fed Chair Powell's speech for fresh hints on next week's price action.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

GBP/USD hovers around 1.2620 in dull trading

GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.

GBP/USD News

Gold price sits at all-time highs above $2,230

Gold price sits at all-time highs above $2,230

Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures