Renewed focus on the strength of US economy


Market Movers ahead

  • The focus in the coming week will be on the US labour market. The February employment report is released and we look for job growth of 235,000. That is a slightly lower level than in the previous months but it is still solid job creation.
  • We expect the US ISM to post a small decline to 53.2. Despite a small drop, ISM data is still pointing to solid growth in the US.
  • In Europe the ECB will attract attention as we get more information on its QE programme.
  • The focus in Denmark will continue to be on Danmarks Nationalbank – especially on Tuesday when data for the FX reserves covering until the end of February is released.

Global macro and market themes

  • Risk assets supported by stronger data and lower tail risk
  • More signs of stronger euro recovery
  • US surprise index may have bottomed
  • Yields to rise on Fed hike and higher inflation
  • More downside in EUR/USD as Fed hikes draw closer

Focus

  • ECB preview: waiting for the QE purchases to start
  • Flash Comment China: HSBC PMI improves in February, major distortions from Chinese New Year unlikely

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