Market Movers
The main event is the FOMC meeting tonight. While a rate hike cannot be ruled out as the US economy is in pretty good shape, we view the odds of the Fed waiting as quite high. We doubt that the Fed wants to deliver the first hike in the middle of a lot of uncertainty about global growth and without having flagged it more clearly to the market. However, Fed chairman Janet Yellen should make it clear at the press conference that the FOMC is ready to hike this year if global developments do not push the US economy off course. The median Fed Funds rate 'dots' are likely to be lowered but to still signal a hike this year.
UK retail sales and US initial jobless claims are due for release today. We look for another robust reading for UK retail sales of 0.3% m/m, which in combination with yesterday's strong labour report will keep focus on when Bank of England will deliver the first hike. US jobless claims have stayed at a low level recently and are expected to be flat at 275k.
In Denmark, Q2 house and apartment prices are due for release.
To Read the Entire Report Please Click on the pdf File Below