In the coming hours and days, investors are likely to be watching various US economic data and speeches by various Fed representatives for clues on monetary policy. In addition to geopolitical developments in the Middle East conflict, the appointment of Christine Lagarde could be a topic of conversation.
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Speculation surrounding ECB President Christine Lagarde
According to the Financial Times, ECB President Christine Lagarde wants to give up her post before April 2027. The FT cites a person familiar with Lagarde's deliberations.
However, an ECB spokesperson told Reuters that Lagarde is fully focused on her task and has not made any decision regarding the end of her term of office.
Former Spanish central bank governor Pablo Hernández de Cos and the Dutch head of the central bank Klaas Knot as well as Isabel Schnabel (ECB Executive Board member) and Bundesbank President Joachim Nagel are being discussed as successors.
Fed minutes on Wednesday in focus - investors likely to focus on monetary policy signals
Today, Wednesday, incoming orders for durable goods (14:30) and new data on industrial production in the USA could also cause some movement.
There will also be a speech by Michelle Bowman (19:00).
The Fed minutes from the latest Fed meeting come into focus at 20:00, which could provide monetary policy signals. After the Fed meeting two weeks ago, investors are hoping for further indications of the state of US monetary policy.
Austan Goolsbee (Chicago Fed) feeds interest rate cut fantasies
The head of the central bank's Chicago branch, Austan Goolsbee, had fueled interest rate cut fantasies on Tuesday in an interview with US broadcaster CNBC. The Fed could decide on several easing measures this year if inflation moves back towards the central bank's target of two percent. Market participants currently expect the Fed to cut interest rates from June at the earliest.
Recently, the US job market has been more resilient, which has lowered monetary policy easing expectations.
Further Fed speeches are on the agenda for Thursday. In addition to Raphael Bostic (2:20 pm/Atlanta), Governor Michelle Bowman (2:30 pm), Neel Kashkari (3:00 pm/Minneapolis) and Mary Daly (11:05 pm/San Francisco) are expected to speak.
Purchasing managers in Germany, the eurozone and the USA in focus
On Friday, the first Purchasing Managers„ Survey (HCOB) estimates for the manufacturing industry, the service sector and “overall" will be on the agenda in Germany.
The counterparts for the eurozone follow at 10:00 a.m. and for the US (S&P Global) at 3:45 p.m.
In between, however, the focus will be on the core rate for personal consumption expenditure and the GDP growth rate for the USA (14:30).
