– China’s GDP rose 7.8%yoy, consensus 7.7%
– New Zealand inflation surprised weak
– We expect Mexico’s central bank to stay on hold
What to watch for today
GBP: Our economists expect retail sales to grow by 0.1%mom in the month of December, in line with consensus and with the previous month’s reading. We think the recent rally in EURGBP mainly represents a reduction in the euro credit risk premium. At the same time, expectations of a potential dovish shift in UK policy with a change in the BoE governorship later this year have also started to undermine the currency, especially after ECB’s less dovish policy stance last week. We think the GBP remains vulnerable to weak data.
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Credit Suisse