6 Mar 2014
Flash: A more eventful calendar ahead – Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted the key events ahead in European trade.
Key Quotes:
“Today’s focus is first on German factory orders (seen up 0.9% MoM after a 0.5% drop in December) and then on to the BoE and ECB rate decisions. Overall, no change from either bank is expected, but there are lingering thoughts that the ECB may lean towards a token 10bp cut at some point ahead – however, the uptick in recent data is likely to have mitigated much of those risks for today’s meeting, as well as move towards other potential policy steps in a loosening direction”.
“In the US we get two Fed speakers, Dudley and Plosser along with revised Q4 productivity and unit labour costs and the weekly initial claims series”.
“More important are January factory orders (seen down 0.5% MoM: snow related again?) and the Q4 change in household net worth. Given increases in both US equities and house prices we can expect another hefty rise close to the USD1.9 trillion seen in Q3: proponents of QE will cheer that “wealth effect”; opponents from the right will mutter about John Law; and opponents from the left will wonder how US citizens without houses and equities - or regular USD250,000 speaking engagements in Abu Dhabi - are supposed to feel”.
Key Quotes:
“Today’s focus is first on German factory orders (seen up 0.9% MoM after a 0.5% drop in December) and then on to the BoE and ECB rate decisions. Overall, no change from either bank is expected, but there are lingering thoughts that the ECB may lean towards a token 10bp cut at some point ahead – however, the uptick in recent data is likely to have mitigated much of those risks for today’s meeting, as well as move towards other potential policy steps in a loosening direction”.
“In the US we get two Fed speakers, Dudley and Plosser along with revised Q4 productivity and unit labour costs and the weekly initial claims series”.
“More important are January factory orders (seen down 0.5% MoM: snow related again?) and the Q4 change in household net worth. Given increases in both US equities and house prices we can expect another hefty rise close to the USD1.9 trillion seen in Q3: proponents of QE will cheer that “wealth effect”; opponents from the right will mutter about John Law; and opponents from the left will wonder how US citizens without houses and equities - or regular USD250,000 speaking engagements in Abu Dhabi - are supposed to feel”.