Dovish central bankers give their verdict

Danske Research Team Danske Bank A/S

Market movers ahead

US PCE core inflation is expected to remain at 1.9% y/y i.e. below the Fed's 2% target.
We have a host of Fed and ECB speakers giving their verdict on the recent dovish twist by the two central banks.
On Brexit, PM Theresa May is expected to bring back her deal for a vote in the House of Commons on Tuesday or Wednesday following the EU's decision to extend Article 50 to 12 April unconditionally.
High-level trade talks between the US and China will resume in Beijing next week with US Trade Representative Lighthizer and Treasury Secretary Mnuchin set to lead a US delegation in talks with China's top negotiator Vice-Premier Liu He and his team.

Weekly wrap-up

The Fed joins the group of dovish global central banks, basically going on hold for the rest of 2019. The Bank of England also remained cautious amid Brexit uncertainty.
On the other hand, Norges Bank went against the tide, raising its benchmark rate and signalling two additional rate hikes this year.
The EU Council grants the UK another lifeline, providing a very short unconditional extension of the Brexit deadline by two weeks to 12 April with a possible extension to 22 May if the House of Commons passes the Withdrawal Agreement before that.
With the dovish global central banks and weak economic numbers, global yields continue to fall.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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