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31 Mar 2015
Key events ahead: Deadline for Iran negotiations, Eurozone inflation – Danske
FXStreet (Barcelona) - Senior Analyst at Danske Bank, Flemming J. Nielsen, previews the key events and data releases for the day – Eurozone HICP inflation and unemployment data, US consumer confidence, and the deadline for reaching an agreement on limiting Iran’s nuclear programme.
Key Quotes
“The preliminary German inflation data have not changed our view that euro-area HICP inflation released today will increase slightly to -0.1% y/y in March from - 0.3% y/y in February mainly because of a less negative impact from energy prices.”
“Another important release today is euro-area unemployment, which we expect to have edged lower to 11.1% in February from 11.2% in January.”
“In the US we expect Conference Board’s consumer confidence to have been broadly unchanged in March. Strong employment growth continues to underpin consumer confidence but both higher gasoline prices and lower stock prices have weighed a bit on consumer confidence in March.”
“The deadline for reaching an agreement on limiting Iran’s nuclear programme in the current negotiations between the P5+1 countries (the five permanent members of UN Security Council + Germany) and Iran will officially expire today. It is possible that the deadline for reaching an agreement could be extended until after Easter.”
“One of the major remaining issues is how fast the current UN sanctions against Iran will be phased out. This will be particularly important for the oil price.”
“An agreement that opens up for fast elimination of UN sanctions and increased oil supply from Iran could put downward pressure on the oil price, whereas a breakdown in the negotiations will probably push the oil price higher.”
Key Quotes
“The preliminary German inflation data have not changed our view that euro-area HICP inflation released today will increase slightly to -0.1% y/y in March from - 0.3% y/y in February mainly because of a less negative impact from energy prices.”
“Another important release today is euro-area unemployment, which we expect to have edged lower to 11.1% in February from 11.2% in January.”
“In the US we expect Conference Board’s consumer confidence to have been broadly unchanged in March. Strong employment growth continues to underpin consumer confidence but both higher gasoline prices and lower stock prices have weighed a bit on consumer confidence in March.”
“The deadline for reaching an agreement on limiting Iran’s nuclear programme in the current negotiations between the P5+1 countries (the five permanent members of UN Security Council + Germany) and Iran will officially expire today. It is possible that the deadline for reaching an agreement could be extended until after Easter.”
“One of the major remaining issues is how fast the current UN sanctions against Iran will be phased out. This will be particularly important for the oil price.”
“An agreement that opens up for fast elimination of UN sanctions and increased oil supply from Iran could put downward pressure on the oil price, whereas a breakdown in the negotiations will probably push the oil price higher.”