Why the IMF is not elected
- Several members of the Bank of England appear before Parliament, including Carney. No doubt the focus will be the EU referendum. Polls show that those intending to vote to remain in the EU focus on economic matters, while those voting to leave focus on the views on immigration.
- Euro area finance ministers meet to discuss the next cash payments to Greece. The IMF has called for unconditional debt relief for Greece. There are valid economic arguments in support of that, but it should be noted that the IMF does not have to stand for re-election in Germany.
- German business sentiment in the form of the ZEW survey is due. German domestic demand is holding up (as should be confirmed by the details of the final Q1 GDP release). Export volumes should be OK, though the values may suffer a little from the Euro move.
- There is little additional comment from the US Federal Reserve today, which is a shame as markets are starting to learn that the world is better than they thought it was. Harker of the Fed was suggesting two or three rate hikes this year in remarks made yesterday.