German CPI for December will be released today and we expect it to fall to 0.3% y/y from 0.5% y/y in November, as lower oil prices are pushing inflation lower. CPI for the German länder will start coming in from 9:00 CET and the total number will be released at 14:00. On Wednesday, Flash CPI for the whole euro area is expected to drop to -0.1% y/y and thus go into negative territory, underpinning the expectation that the ECB will announce QE at the upcoming meeting on 22 January.
The euro Sentix investor confidence for January will be released today. It has proven a fairly good leading indicator for the German Ifo index. It rose sharply in December and is expected to show a further increase in January on the back of lower oil prices and fading effects of the Ukraine crisis, which took a toll on confidence in 2014.
In Demark, the central bank will release data for its FX purchases in December this afternoon and, in Norway, central bank governor Olsen is scheduled to speak at 9:00 CET.
Read the full report: FX Daily