With little in the way of major data releases on the agenda in the coming week, politicians and central bankers may steal the limelight.
It is still very unclear how and when the incoming administration's policies will have an impact on the US economy but Donald Trump has announced an important speech on Wednesday, which may tell us more.
In the UK, we await a key speech from the Prime Minister on what the government is looking to get out of the Brexit negotiations.
We expect Scandi inflation data to spike in December, especially in Sweden, but this is due to temporary factors.
Global macro and market themes
Global recovery and reflation gain momentum with strong PMI numbers and euro inflation prints this week.
However, US yields have peaked for now, while we expect the European curve to steepen.
Turbulence in the Chinese FX market is spilling over into major FX markets.
We expect the equity market rally to take a breather for now but we recommend buying on the dips.
Near-term risk factors to watch out for include a stretched surprise index, further China turbulence and the Trump inauguration on 20 January.
To read the entire report Please click on the pdf File Below