Today German industrial production for October will be released. We expect another month of weakness based on declines in factory orders, as there has recently been a lag from factory orders to industrial production. We do, however, still expect the figure to trend higher after the weak print in October. We also get data for the December Sentix investor confidence. On the back of the rebound in the November figure, we expect this to continue and forecast an increase in December. However, note that the survey poll is running at the end of this week implying that the number is very likely to be influenced by Thursday's ECB meeting.
We expect Chinese FX reserves figures to show a drop of around USD50bn of which 70% is due to FX valuation as the EUR and GBP have weakened against the USD.
Tonight the US labour market conditions index will be released. On the back of the non-farm payroll release, however, we think tonight's release will be less important in terms of the FOMC December decision.
In Scandinavia focus will be on industrial production figures out of Denmark and Norway, see Scandi Markets.
Sandwiched as it is between two weeks with key interest rate decisions from the ECB and the Fed, the coming week will likely be less eventful. That said, there are a number of important events on the agenda. In the UK, the BoE meets on Thursday. While we do not expect any rate changes, signals from the bank will be closely monitored for a first indication of whether it will hike in February as we predict.
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