Here's the Economic Calendar for the week commencing the 10th of January 2011. This week there's some key inflation data due out from the EU and US, with both economies set to release their CPI reports, and the US and UK also set to release producer prices. There's also industrial production stats from France, Italy, the EU, UK, and US - the US also has capacity utilisation, University of Michigan confidence, and its trade balance data due (oh and China just released its trade stats). On monetary policy the Bank of England and European Central Bank both meet this week to review monetary policy settings.

As noted there's a few key CPI releases out this week, including of course the US CPI data (the US also has capacity utilization numbers out - highly relevant to the inflation picture). The US is expected to report an increase in the headline inflation rate, but for core CPI to remain more or less flat vs November. Over in the EU it's a similar story, slightly higher headline, but flat core inflation. For now it seems inflation is not a worry in the developed economies - but one has to wonder about imported inflation from the rapidly growing emerging markets like China and India - who're both seeing rising inflation.

Another feature of this weak is a set of industrial production figures - this will be a good chance to get an insight into how the manufacturing sector is coping in various parts of the world. First up is France (expect a little worse), then Italy (expect a little better), Euro-Zone (worse), UK (flat), and of course the US (flat to slight improvement). It's worth noting two stats here - the US last reported its industrial production growth at 0.4% year on year; China last reported its industrial production growth at over 13% year on year.

On the monetary policy front, as noted the Bank of England will meet this week to review monetary policy, now - with this one, there's a reasonable chance they may actually start the normalization process this year with a couple of rate hikes - but for now expect no change. It's a similar story for the European Central Bank - but we'll have to watch that one closer within the backdrop of the Euro-crisis; which is still ongoing, what will the ECB have to say about it this time?

So as always, have a great week, watch out for surprises, and stay tuned for updates...

Sources
DailyFX www.dailyfx.com/calendar
Forex Pros www.forexpros.com/economic-calendar/
Forex Factory www.forexfactory.com/calendar.php
Bloomberg www.bloomberg.com
+various statistics websites and central bank websites for verification

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