This week: positive US numbers ahead
<b>Ugens nøgletal</b>: The week commences with the G20 meeting in the weekend and ending with EU meeting in the weekend after. In the week ahead a lot of speeches from both FED and ECB members, including Bernanke and Trichet, will be important to follow.
Everything regarding a possible bailout of EU banks and debt burdened countries will be Euro positive while talks and chatter will be the opposite.
For the numbers in the week ahead we think the US numbers will show recovering signs as inflation is dampened by a higher USD for September and a lower oil price. Further for the first growth indicators for September is released in the Empire State Manufacturing and the Philly FED—both we see surprise on the upside as the recent data from the US has been positive. Further the FED was resisting to print money in this round where ECB and BoE announced new quantitative measures.
For Europe the only positive thing is that the balance of payment is going to show some positive signs, which will help the debt struck continent to repay some liabilities. However growth will be tepid as seen in the ZEW/IFO numbers and further the slowdown are beginning to hurt the Chinese Hard Data (Industrial production/GDP). Chinese Retail Sales will probably still be a positive story.
Questions or comments to the above? Contact hedging@global-riskmanagement.com
Source: Global Risk Management
