There are several important data releases on the international agenda next week. On Monday, German IFO for January will show whether PMI figures have been strong. On Tuesday, Q4 13 UK GDP is expected to show an acceleration to 2.8% y/y. This may underpin expectations that the Bank of England is under increasing pressure to tighten. Wednesday is sure to be dominated by the Fed's FOMC meeting, where QE tapering is expected to continue, i.e. the programme is set to be scaled down to USD65bn. On Thursday, German inflation will be in focus. A new record low (latest 1.2% y/y HICP, expected 1.3% y/y) is likely to put pressure on the ECB to cut again, especially since Eonia is still trading close to the refi rate. Q4 US GDP is also due out, expected to print 3.3% q/q (seasonally adjusted annual rate). On Friday, heavy eurozone CPI and unemployment figures are due out.
This week's Reading the Markets Sweden is limited to our forecasts for upcoming Swedish data due to the launch of the Outlook. In general, we expect unchanged-to-lower figures (see table on next page for specific forecasts).
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