The European Central Bank meets. It is time for ECB President Draghi to start a rehabilitation program to overcome a worrying addiction to easing. We could see a change in the ECB statement, recognizing Euro area economic normalization. This is not the end of quantitative policy easing, but the end may be near.
Japanese first quarter growth has been revised. This is not a surprise. Growth estimates are wildly random guesses, and subject to frequent revision. Unusually, growth was revised lower – mainly due to inventories. Euro area growth is to be revised later today.
Today is not just about economics. Former FBI director Comey testifies to Congress. The greater the political outrage, the greater the importance to markets. Political outrage is time consuming – time spent being outraged is time that cannot be spent on fiscal policy or on providing leadership.
Final opinion polls in the UK General Election show a Conservative lead of between 1% and 12%. UK opinion polls are not treated with that much respect. A parliamentary majority of fifty seats or more would probably be regarded as a Conservative success. A hung Parliament or a small majority would probably weaken sterling.