23 Mar 2015
Key events in Europe: Merkel-Tspiras meeting, Draghi’s testimony – TDS
FXStreet (Barcelona) - Jacqui Douglas, Senior Global Strategist at TD Securities highlights the key events and data releases in Europe in this week, noting that today’s Merkel-Tspiras meeting and Draghi’s testimony before the Europe economic and monetary affairs committee will be the key events for the day.
Key Quotes
“Merkel-Tsipras Bilateral Meetings (Mon 23 Mar): The early talks on the sidelines of the EU Leaders’ Summit this week seemed to go reasonably well, as Merkel has typically been a little more willing to compromise than some of her other German colleagues.”
“So we could get some reasonably risk-positive headlines, especially if Tsipras comes to the table with some more concrete proposals for structural reforms.”
“Flash PMIs (Tues 24 Mar): The German manufacturing PMI should edge a little higher again in March, and we’re in line with consensus in looking for a reading of around 51.5.”
“France is probably the bigger question mark though after its services PMI jumped from 49.4 to 53.4 in Feb, reaching its highest level since 2011.”
“Markets are looking for just a -0.4pt drop to 53.0, but most times when you see an upside surprise as substantial as the one in Feb, you typically see a larger pullback than that the next month, so we see some downside risks to consensus expectations.”
“Draghi Testimony (Mon 23 Mar): ECB President Draghi is testifying in Brussels before the European Parliament's Economic and Monetary Affairs committee.”
“We may see more discussion here of the impact of QE, and perhaps on the big move lower in the EUR.”
Key Quotes
“Merkel-Tsipras Bilateral Meetings (Mon 23 Mar): The early talks on the sidelines of the EU Leaders’ Summit this week seemed to go reasonably well, as Merkel has typically been a little more willing to compromise than some of her other German colleagues.”
“So we could get some reasonably risk-positive headlines, especially if Tsipras comes to the table with some more concrete proposals for structural reforms.”
“Flash PMIs (Tues 24 Mar): The German manufacturing PMI should edge a little higher again in March, and we’re in line with consensus in looking for a reading of around 51.5.”
“France is probably the bigger question mark though after its services PMI jumped from 49.4 to 53.4 in Feb, reaching its highest level since 2011.”
“Markets are looking for just a -0.4pt drop to 53.0, but most times when you see an upside surprise as substantial as the one in Feb, you typically see a larger pullback than that the next month, so we see some downside risks to consensus expectations.”
“Draghi Testimony (Mon 23 Mar): ECB President Draghi is testifying in Brussels before the European Parliament's Economic and Monetary Affairs committee.”
“We may see more discussion here of the impact of QE, and perhaps on the big move lower in the EUR.”