A confirmation of solid growth trends is likely, said UBS Chief Investment Office (CIO). This should support the EUR against the USD. Also interesting in that respect will be the US current account data and the Eurozone consumer confidence report.
Swedish unemployment data on Tuesday and economic sentiment data on Wednesday will be important for CIO's short CHFSEK House View position. CIO expects ongoing solid growth in Sweden.
Last but not least, investor attention will also be drawn toward several central bank decisions, among them Hungary, Mexico, New Zealand and Norway. New Zealand's economy has cooled lately, but CIO expects a rebound. Hence, CIO was a bit puzzled that the last RBNZ forecasts did not see a rate hike coming before 2019.
The Norges Bank will have to find a compromise between strengthening growth and weakening inflation, plus falling house prices. CIO expects an unchanged policy stance, but a rate cut remains a possibility.
(By UBS)
