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22 Mar 2016
German data, UK CPI eyed - Westpac
Germany Mar IFO, the ZEW Mar survey, UK CPI as well as Fed’s Evans, are the key events for the next European and US sessions, notes Westpac FX Strategy Team.
Key Quotes
Germany Mar IFO is out and business climate is seen to rise to 106.0. While the current assessment should tick lower, expectations should rise.
The ZEW Mar survey, out an hour later, is also expected higher. France and Germany Mar preliminary PMIs are released before the Eurozone numbers.
Oil continues to weigh on headline CPI in the UK; the median forecast is 0.4%m/m and 0.4%y/y, while core is seen to remain steady at 1.2%y/y.
US data is second tier. We hear from Fed’s Evans (dove, non-voter). Canada’s budget will be delivered and a deficit of around $30bn is expected. Questions of funding aside, the more stimulative the budget the more it reduces BoC easing risk and the more bullish for CAD it looks.
Key Quotes
Germany Mar IFO is out and business climate is seen to rise to 106.0. While the current assessment should tick lower, expectations should rise.
The ZEW Mar survey, out an hour later, is also expected higher. France and Germany Mar preliminary PMIs are released before the Eurozone numbers.
Oil continues to weigh on headline CPI in the UK; the median forecast is 0.4%m/m and 0.4%y/y, while core is seen to remain steady at 1.2%y/y.
US data is second tier. We hear from Fed’s Evans (dove, non-voter). Canada’s budget will be delivered and a deficit of around $30bn is expected. Questions of funding aside, the more stimulative the budget the more it reduces BoC easing risk and the more bullish for CAD it looks.