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Fed speak again

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The G7 finance ministers accomplished what they were expected to accomplish – nothing (of any note). Why markets continue to think something constructive may come out of one of these meetings is a mystery, when the G7 has done nothing since 1987.
  • Austria's presidential election is still too close to call, with postal ballots to decide the outcome. The Greek Parliament passed its fiscal reform program over the weekend.
  • Business sentiment data is due from the Euro area – prone to overreact to underlying economic data, and also biased to be nominal when it is supposed to be real, but reflecting the stronger economics of the domestic economy.
  • Rosengren of the Fed was signalling his willingness to see rate hikes at the June meeting. We hear from Williams and Bullard today.