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Key events ahead: Focus remains on Greece and US data – Danske
FXStreet (Barcelona) - Chief Analyst at Danske Bank, Allan von Mehren, previews the key events ahead in the day – Eurogroup meeting, German Ifo and the US durable goods orders release.
Key Quotes
“The Eurogroup meeting starts today and focus will be on Greece. The parties are still some way from reaching an agreement and we do not expect a solution to the Greek issue at the current meeting. Negotiations will continue at the Eurogroup meeting on 11 May – the day before the next large payment to the IMF is due (for more see Grexit - what if? Don't expect any solution before the summer crunch time, 22 April 2015).”
“German Ifo expectations are expected to decline a bit as it has reached a rather high level. The index already points to strong GDP growth and even if the Ifo expectations decline a little, this would still suggest a solid expansion in the German economy in the first half of 2015.”
“We look for a rebound in US durable goods orders for March. In particular data on the key non-defence durable goods orders ex. aircraft have been extraordinarily weak lately with the average growth rate over the past three months at -8% annualised. We expect part of the weakness to have been caused by temporary factors and in line with consensus expect a rebound.”