From the FXWW Chatroom: The European data will consist largely of PMIs. The final euro area January composite PMI should be revised down from the flash estimate of 58.6 to 58.2 but that will still represent a small gain from December’s 58.1. That level, if maintained for the rest of the quarter, would be consistent with euro area growth of 0.8% qoq, significantly above our forecast of 0.5% qoq.
EUR Rates: The uptrend in yields remains intact
Still firm data and more hawkish talk out of the ECB have kept yields rising. While the sell-off has been more aggressive than we had anticipated, we see scope for the re-pricing of the belly of the EUR curve to continue. There is very little supply this week and watch BC sir even they gave name to it irrational exuberance.
EUR Rates: The uptrend in yields remains intact
Still firm data and more hawkish talk out of the ECB have kept yields rising. While the sell-off has been more aggressive than we had anticipated, we see scope for the re-pricing of the belly of the EUR curve to continue. There is very little supply this week and watch BC sir even they gave name to it irrational exuberance.
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