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Euro area's most important release on Friday – J P Morgan

FXStreet (Barcelona) - Analysts at J.P.Morgan Group note that Euro area’s most important release will be the preliminary GDP on Friday, adding that BoE is in no hurry for a rate hike while anticipating it to take down its growth forecast moderately.

Key Quotes

“Euro area’s most important release is the preliminary GDP (Friday). Italy and region-wide IP (Monday and Wednesday) and final CPI (Thursday and Friday) will also be important. UK’s main releases include the labor market report and the BoE’s quarterly inflation report, both on Wednesday. We are looking for a tenth drop in the unemployment rate and a small pickup in wage growth.”

“In the QIR, we think the BoE could provide some indication for a rate hike in mid-2015 (currently first hike is priced in for Q3 2015) and is likely to highlight downside risks from Euro area and take down its growth forecast modestly. Overall, the event should suggest that they are not in a hurry to normalize rates.”

“In Scandis, both Sweden (Tuesday) and Norway (10th-15th) release CPI which will be very important. Recall that the Swedish print had printed well below consensus in the prior month which had prompted easing by the Riksbank. Norway’s print had also printed below expectations and bears watching for future policy implications.”

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