Market movers ahead
- Inflation expectations are moving higher in the US but we expect CPI data for January to show that core inflation remains subdued.
- UK inflation data will also be important, as the Bank of England may increase rates as early as May.
- We expect the Swedish Riksbank to maintain its confident stance on the economy and inflation at next week’s monetary meeting, even though we see major risks to both.
- Norges Bank Governor Øystein Olsen delivers his annual address, where he is likely to touch on the strengthening economy and fading risks in Norway.
Global macro and market themes
- We view the sell-off in stocks as a correction – the upward trend is supported by strong profit growth.
- Data this week adds to the picture of a robust global recovery underpinning profits.
- Bond yields are set to increase further.
- EUR/USD is in a range before the next move higher.