Quiet data week after bank holiday

A shorter week for the UK markets with a bank holiday yesterday leading into a slower week in relation to economic data.
Quiet data week after bank holiday
For today we have US consumer confidence data that should attract some attention to gauge whether the US recovery is continuing and for the wise money markets what the implications of this will be in relation to Fed policy.

Last week Fed Chairman Ben Bernanke opened the door for an early exit of the Fed’s QE programme and this has driven US Dollar gains in the market

For an exit strategy to become a reality we need to see a continuing improvement in the underlying economic data and this is why the consumer confidence data will be important today.

We have more data later in the week of significance with German unemployment figures and German CPI data out tomorrow although these are not expected to spring any major surprises. We will also see the monthly interest rate decision from the Bank of Canada- no change is anticipated.

Last night the minutes from the Bank of Japan were released and showed some division developing within the board in relation to the inflation targeting measures.

Two board members suggested watering down the commitment to monetary easing which hassled to some falls in Japanese equities and to some JPY gains.

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