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More hawkishness

| Posted by: Paul Donovan | Tags: Paul Donovan

  •  We have a couple of Fed speakers on the agenda today, and with the bias of recent comments tilting towards the hawkish market interest in their comments is likely to be heightened. US data is initial claims and pending home sales.
  • Nowotny of the ECB has been clear in his opinion that interim assistance from the ECB to Greece would be illegal. Meanwhile the Greeks say that they are starting to draft a deal with their creditors (raising the question as to what they have been doing over the past five months if not preparing a deal?).
  • Euro area business and consumer confidence are due, in the wake of a stronger domestic demand story in the first quarter. The UK and Spain give details of their first quarter GDP figures. Both have similar real GDP rates, but the history of their nominal GDP since the crisis is different.
  • Japanese retail sales came in weaker than expected, again. This comes in the wake of the BoJ expressing concern about the weakness of the consumer preventing the BoJ from reaching its aspirational inflation target.