The end of the week will be a busy one as we get manufacturing data from China, the US, and the UK along with Japan’s quarterly Tankan Manufacturing Index.
In Europe we continue to have these battling dynamic between higher inflation and the anticipation for the start of the ECB rate tightening campaign, while at the same time Ireland has just concluded its banking sector stress tests and it showed that Irish banks will need to find another 24 billion euros to re-capitalize themselves. Of course the government owns 4 our of 6 banks, and will likely have to nationalize all the banks before long to work through this mess.
Which theme will control the Euro as we head to the weekend, we’ll see.
In the US, all eyes will be on the March non-farm payroll report, though we have a speech by one of our hawkish FOMC members – Philly Fed President Charles Plosser – and the manufacturing PMI a bit later in the NY morning session.
