In the upcoming trading sessions, a couple of notable surveys in the UK will be watched closely in order to evaluate the morale among consumers following the slowdown witnessed in UK’s economic growth. CBI reported sales figures due later today and tomorrow’s GfK consumer confidence data for the current month will offer clues to UK’s economic climate in early 2015.With the Fed’s two day policy meeting drawing to an end, yesterday’s post-policy statement revealed no material change in the central bank’s stance. However, the central bank noted that inflation expectations had "declined substantially", while it reaffirmed that inflation would rise gradually towards the 2% target. Meanwhile, focus shifts to Inflation figures from Germany in order to decipher if the Euro zone’s largest economy managed to dodge deflation in January.
Amid a light day in terms of economic releases, the Pound is trading in a tight range against the greenback this morning. With yesterday’s GDP showing that economic growth in the UK missed market estimates for the last quarter of 2014, Sterling traders will eye this week’s GfK survey to gauge the health of spending among UK consumers for January. In the Euro zone, today’s German GfK survey revealed that morale among consumers for February improved to its highest in thirteen years.Across the Atlantic, the Fed’s policy meeting will attract considerable attention among market participants to gauge the timing of an interest rate rise in the US, especially after yesterday’s soft US durable goods orders data heightened concerns over the economy’s resilience to the current subdued global conditions.
The preliminary UK GDP data this morning showed that economic growth expanded at a slower than expected pace for the last quarter of 2014. Consequently investors’ expectations of an early interest rate rise in the UK have diminished. Separately, another survey showed that the number of mortgage approvals for December continued to ease for a sixth straight month.Across the Atlantic, a slew of crucial economic updates will keep investors on their toes today. December’s durable goods orders report will be eyed to gain an early insight into Friday’s preliminary US GDP data for the fourth quarter. Additionally, the US consumer confidence survey for January will attract considerable attention among investors.