Market movers today After some quiet days in terms of data releases, we have a busier day today. The most important release, which we look very much forward to, is the release of Swedish CPI inflation data for December at 09:30 CET. We estimate CPIF inflation rose to 1.9% y/y in December, very close to the 2% target. We believe December inflation was hit by some exceptional events briefly pushing inflation higher, which should reverse at the beginning of 2017. For more details, see our Sweden Economic Comment: December inflation boosted by travel , 10 January.
The Riksbank minutes are also due. Three board members voted against the QE extension and the minutes will reveal how they reasoned.
German GDP growth (non-seasonally adjusted) for 2016 will give the first indirect information about how strong GDP growth was in Q4 16, where both survey indicators and hard data have pointed to strong economic activity.
Focus on the account of the ECB meeting will be on the discussion related to the changes to the parameters of the asset purchasing programme - especially regarding the change that allows the ECB to purchase bonds that yield below the -0.4% deposit rate, as it remains uncertain how 'aggressive' the ECB will be in terms of buying below the deposit rate.
Speaker of the House, Paul Ryan, tweeted yesterday we 'can learn more about Republican priorities for 2017' and is due to discuss more in an interview on CNN today at 15:30 CET.
The Fed's Evans, Kaplan and Bullard are scheduled to speak today. There has been some confusion about when Janet Yellen is due to speak - it should be just after midnight at 01:00 CET.
To read the entire report Please click on the pdf File Below