The Euribor curve has flattened this week...>

EURIBOR: The Euribor curve has flattened this week with Whites unchanged, Reds

0-0.5 ticks higher, Greens 1-1.5 ticks higher and Blues 1.5-2 ticks higher.

- European data has continued to disappoint, with the PMIs on Friday reversing

any moves lower in the Euribor strip seen earlier in the week. The PMIs fell

below expectations once again, particularly in France. The protests of the

gilets jaunes has weighed on both output and confidence while in the rest of the

Eurozone there are still concerns about the auto industry, Brexit and exports

(particularly to China).

- However, this does mask some of the moves this week, with Euribor futures

originally moving higher before falling back following the ECB meeting on

Thursday. The ECB ended asset purchases as expected, revised its growth

forecasts lower and made small tweaks to its inflation forecasts while also

stating that risks to growth are starting to tilt to the downside.

- Survey data is the key again next week with the German IFO, Belgian business

confidence and German GfK consumer confidence due. In terms of hard data, the

final prints of Eurozone inflation and French Q3 GDP are the highlights.