Market movers ahead
- Next week in the US, focus will be mainly on the FOMC meeting with the accompanying policy announcement on Wednesday and the January jobs report released on Friday.
- In the euro area, the week ahead is packed with economic releases, e.g. HICP inflation figures for January, which are due out on Tuesday.
- In the UK, the main event next week is the Bank of England (BoE) meeting on Thursday. This is one of the big meetings with an updated Inflation Report and a press conference, so watch out for an overload of information.
- The Bank of Japan (BoJ) two-day monetary policy meeting ends on Tuesday. In connection with its monetary policy announcement, the BoJ is also due to publish its Outlook Report containing the bank’s updated growth and inflation forecasts.
Global macro and market themes
- Markets are struggling to grasp the policy uncertainties given the binary possible outcomes.
- However, the global economy is heading higher and the reflation theme remains intact.
- US yields should rise on Fed risks and Donald Trump’s first 100 days in office.
- Over the coming three months, the USD should strengthen particularly versus the JPY and GBP.
- We are bullish on Scandi currencies, particularly on NOK.
- We remain positive on equities but note the risk of a correction in European equities.