What to watch

US markets are closed today for MLK Day but there is a busy week ahead particularly for the UK, while the BoJ and Norges Bank will also hold their policy meetings.

• UK data will be in focus this week with labour market data due for release on Tuesday, inflation data Wednesday and consumer confidence / retail sales data on Friday. Other than next week’s PMI data these will be the last major data release ahead of the next MPC meeting and MPR (which are due 2 February).
• The BoJ policy decision is due on Wednesday morning. Given the move in the yen and the increasing intervention required in Japanese government bond markets (with 10s continuing to operate above the BoJ's permitted YCC cap) there is focus on whether the BoJ will move to a more hawkish stance possible as early as this week.
• For the Norges Bank meeting on Thursday, analysts are split in the Bloomberg survey with 50% expecting an on hold decision while 50% expect a 25bp hike.
• In terms of US data this week the focus will be on Wednesday with the release of retail sales, PPI, industrial production and the Beige Book headlining.