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Key events this week: Riksbank rate decision, BOE’s inflation report – Nomura

FXStreet (Barcelona) - The Research Team at Nomura previews the key events this week in the US, UK and Eurozone.

Key Quotes

“In the US, US retail sales data are published on Thursday; sliding retail gas prices should help boost discretionary consumer spending. and as a result Nomura expects core retail sales to increase by 0.5% in January, reversing its unexpectedly sharp 0.4% decline in December.”

“On Friday, the University of Michigan consumer sentiment figures are published; this measure has increased for the past six months as energy prices and interest rates have declined.“

“In Europe, UK industrial and manufacturing production data are published on Tuesday.”

“Eurozone industrial production data will be released on Thursday for which we expect a small contraction of 0.1% m-o-m in December following an increase of 0.2% in November.”

“The Riksbank will release its interest rate decision on Thursday; Nomura expects no change in the main policy rate, but it is a close call. In fact, we see a 40% chance of further easing in the upcoming meeting because of limited upside risk in inflation.”

“The Bank of England will release its quarterly inflation report on Thursday too; UK activity data have been slightly softer than the MPC’s bullish expectations and inflation weaker too.”

“On Friday, the flash estimate of Eurozone’s Q4 GDP will be published; Nomura expects a q-o-q increase of 0.2%, in line with the consensus.”

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