The Bank of England meeting on 14th January will be the main event this week. BoE is expected to leave both, interest rates and monetary asset purchase target unchanged at 0,50% and 375bn GBP respectively. The decision itself is not going to be a game changer, however the BoE minutes could give some insight on monetary authorities stance later this year.
ECB is also going to publish its minutes 14th Jan. It may actually show whether ECB sees any further reasons that could act in favor of additional easing throughout 2016 should the recent measures prove unsuccessful.
Polish Monetary Policy Council will be announcing its decision on 14th January as well. Although MPC is widely expected to leave interest rates unchanged at 1,50%, as they pledged to keep it that way following the 50bps cut in March 2015, it should not be seen as non event. It’s the last meeting before terms of some MPC members will end.
In terms of economic releases we are also going to find some that may matter for the currencies and stock indices. On Tuesday UK will publish its industrial and manufacturing production data. Wednesday should bring the update on Chinese trade balance alongside the export and import data. Additionally the latest French CPI data as well as Eurozone industrial production will come into focus. As we already mentioned, Thursday will be the day of central banks, however data-wise it’s going to be very interesting as well. The labor market report from Australia could show whether the last improvement in the employment was only a temporary surge or we could notice a new, positive, trend forming. Later during the day the Sweden inflation data as well as food prices in New Zealand will be watched closely. The key release on Friday will be the US retail sales report. US will dominate the day, as industrial production and University of Michigan reports are going to be watched closely. Additionaly, the final CPI data will be released in Italy, Spaind and Poland.