Eurozone: Events to keep your eye on – Danske Bank

FXStreet (Delhi) – Research Team at Danske Bank, lists down the most important events of the Eurozone for the week.

Key Quotes

“In the euro area data for the German IFO expectations is due to be released, which we also expect to improve slightly for the same reasons as mentioned above. Historically, the German manufacturing PMI and the IFO expectations have been highly correlated. Note that the financial survey indicators (Sentix and ZEW) have undershot the economic survey indicators (IFO and PMI) in recent months but we expect this development to be temporary and fade away soon as we have now started seeing improvements in the financial indicators.”

“Besides IFO expectations, data for the German GDP components is due to be released on Tuesday. The headline figure released last week was better than expected, most likely due to strong growth in private consumption. The data for the decomposition could still attract some attention as it will reveal the degree of weakness in exports and investments.”

“On Thursday, money supply figures for October are due to be released. We generally expect the recent strong growth to continue but are also waiting to see if the decline in growth in loans to non-financial corporations in September continues. This is one of the transmission mechanisms of the ECB’s QE purchases, and if the upward trend has reversed, this will be a concern for the ECB.”