Policy uncertainty to remain high - Socgen

Analysts at Societe Generale explained that following last year’s dramatic political events, policy uncertainty is expected to remain high also this year.

Key Quotes:

"A theme to follow closely will be the strength of rising inflation in the euro area. This week’s expected rise in December inflation to over 1% looks set to fuel concerns further over inflation expectations, bond yields and ECB policy, while survey data should confirm robust GDP growth at the end of last year. In the US, this week’s data should justify the Fed’s recent hike, with the ISM and payrolls remaining strong. In Asia, focus will be on China’s end-year FX reserves which should have declined somewhat."