Just out data has shown that net lending to UK consumers for December rose less than expected. However, the GfK survey released earlier today showed that optimism among consumers strengthened for January, as low oil prices kept domestic spending levels supported. With no other crucial economic triggers scheduled in the UK today, Sterling investors will eye events abroad for further direction.Across the Atlantic, market participants will keep a tab on today’s preliminary GDP data in the US which is expected to show that growth in the world’s largest economy slowed. In the Euro zone, traders will eye the flash consumer price inflation reading later today to verify if deflationary trends are strengthening in the region, especially after yesterday’s German inflation data showed a more than expected fall.
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.