UK CPI and German ZEW in focus today – Danske Bank

Analysts at Danske Bank suggest that UK CPI and German ZEW will be the most important economic releases for today’s session.

Key Quotes

“We estimate UK CPI inflation rose to 2.8% y/y in April from 2.3% y/y, which is higher than consensus. The fact that many UK gas and electricity companies have lifted their prices from April and the timing of Easter (April 2017, March 2016) make it more difficult to estimate inflation in April.”

“In Europe, relief over the French presidential election pro-EU outcome is likely to drive ZEW expectations upward further (supported by rising Sentix expectations in May).”

“Today, the Riksbank will present a proposal on target variables and possible intervals (09:30 CET). Overall, it seems likely that the Riskbank will change to target the CPIF but it seems more questionable whether it will introduce a tolerance interval. Our assessment is that neither a change of target variable nor a new tolerance range will change the monetary policy pursued.”

“In Norway, GDP figures for Q1 are due out today. We estimate that mainland GDP climbed 0.5% q/q, which is above Norges Bank's projection in the March monetary policy report (0.43%).”