BoE meeting to steal the limelight this week – Danske Bank

Research Team at Danske Bank, suggests that it is a very quiet start to the week on the data front and the change in Fed's Labour Market Conditions Index is the only release of interest.

Key Quotes

“It has shown a fair amount of weakening in the labour market but Fed chairman Janet Yellen has played down the role of the index recently and markets pay limited attention to it.

In the afternoon Fed member George (voter, hawk) will speak and maybe give some input to how she evaluates the economic situation following the recent robust payroll report. More Fed speakers are up later this week.

The key event this week will be the Bank of England (BoE) meeting on Thursday. BoE Governor Mark Carney have been very dovish recently and we look for a 25bp cut and a soft statement. The UK labour leader confronts a challenge on his leadership today when Angela Eagle is expected to launch a leadership bid.

Key global releases this week will be US retail sales and inflation (Friday) and Chinese date for GDP, industrial production and retail sales (Friday).”