In line with market expectations, the BoE kept its benchmark interest rate unchanged at its policy meeting yesterday. Additionally the central bank lowered its inflation forecast for the next twelve months. The downgrade was in line with the guidance provided by the BoE Chief, who had earlier indicated short term weakness in Britain’s inflation.The Euro slumped against most of its peers in the aftermath of yesterday’s ECB monetary policy meeting. Across the Atlantic, today’s official labour market report is anticipated to hog limelight in the latter half of today’s trading session. The print is anticipated to show that job growth in the US remained robust and unemployment rate in the nation nudged lower for February.
In today’s trading session, the ECB’s policy meeting is likely to hog the limelight with the central bank expected to offer details of its asset purchase programme, set to begin later this month. In the UK, the BoE’s meeting is unlikely to attract much attention among market participants, particularly considering that the central bank is widely expected to maintain its current stance. Going forward, tomorrow’s consumer inflation expectations survey in the UK will be noted, especially after Mark Carney recently hinted that weakness in the nation’s inflation is expected to remain short-lived.Across the Atlantic, today’s factory orders data for January is expected to show that demand among local manufacturers rose for the first time in the last six months.
An ease in today’s services PMI data in the UK has weakened hopes that overall activity in Britain’s private sector remained firm last month. This follows upbeat manufacturing and construction PMI readings in the nation earlier this week. Today’s less than anticipated reading has raised doubts among market participants about the strength of Britain’s economic growth for the first quarter of 2015. In the Euro zone, today’s retail sales data will be eyed for any upside surprise, especially considering yesterday’s robust German retail sales numbers.Across the Atlantic, today’s ISM non-manufacturing PMI report coupled with the ADP’s private sector employment gauge will keep investors interested in the latter half of the trading session.