Next week CIO's focus will be on inflation.
The US, Germany, Sweden, and Norway will publish their latest consumer price data. These are important inputs for the Fed, the ECB, and the Riksbank, which CIO expects will tighten monetary policy over the coming six months. Higher-than-expected consumer prices would make that step easier. In that respect, the release of the Fed minutes on Wednesday may also provide hints at its path forward.
CIO will also watch UK and Eurozone industrial production data, which should confirm the PMI's indications of a healthy European economy. UK trade data also needs to be watched, as concerns about a rising "twin deficit" came up lately. This may temporarily offset the support for GBP coming from recent BoE hints at rate hikes.
(By UBS)
