Market movers ahead
- We expect the currency war to be in focus at the G20-finance minister meeting but we do not expect the US to join criticism of Japan.
- The lame-duck Bank of Japan is unlikely to announce further easing next week and focus is instead likely to be on the nomination of a new bank of Japan governor.
- We see only a slim chance of a rate cut by the Riksbanken next week.
- In the euro area, the release of Q4 GDP should confirm contraction.
- In the US, we estimate retails sales held up relatively well in January despite tax hikes.
- The ECB stops the rise in the euro and interest rates through verbal intervention.
- Decent start to 2013 in the US despite weak Q4 GDP growth.
- Mark Carney does not signal major changes at the Bank of England but opened the way for a more flexible inflation target.
- Bank of Japan governor Masaaki Shirakawa announced an earlier retirement.
- China's January data better than expected but little visibility due to seasonal distortions.
- In Sweden calls for further rate cuts are fading on the back of strong data.