Brexit and ECB in focus today – Danske Bank

Research Team at Dansk Bank, suggests that the Brexit referendum in the UK continues to be the main focus as both sides have suspended their campaigns for a second day after the tragic killing of Jo Cox, a Member of Parliament yesterday.

Key Quotes

“ECB president Mario Draghi speaks later this afternoon but is unlikely to give any new signals. Central banks and investors across the board are in a wait-and-see mode awaiting the result of the UK Brexit vote on Thursday next week.

Euro area releases labour cost growth, which is expected to stay subdued just above 1% y/y.

In the US housing starts and building permits are due this afternoon. While home sales have picked up in the past months, housing starts have moved broadly sideways. However, normally home sales lead building activity and we should see a pick-up in housing starts soon.”