The main event next week will be the meeting of the governing council of the European Central Bank scheduled for Thursday. Although speculation about a rate cut rose following last month's meeting, we expect the ECB to remain on hold.
The Bank of England's monetary policy council also meets on Thursday and we expect rates to be kept on hold here as well.
Inflation figures for December are due to be released next week in China, Norway and Sweden.
Finally, the minutes from December's Riksbank meeting, released next week, might also attract some attention.
Global update
A US budget deal was passed by the Senate and the House approved the legislation at the last minute, avoiding major tax hikes for most US households. However, the deal does not include raising the debt ceiling or any longer term budget cuts.
The FOMC minutes revealed that if the economic recovery continues at the pace projected by the Fed, we will see an end to QE this year.
Manufacturing PMIs suggest that the Chinese economic recovery continues.
The Danish FX reserves fell only slightly in December despite EUR/DKK trading above parity indicating that an independent Danish rate hike is not imminent.
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