Data just released indicated that the unemployment rate in the nation remained at 6% and domestic wage earnings improved more than expected for the three months ended October. Meanwhile, the minutes of the BoE’s latest policy meeting indicated that policymakers remained divided over the central bank’s current stance. However, Sterling showed little reaction to today’s domestic macro updates as investors remained focused on the outcome of the US Fed’s policy meeting scheduled later today. Although the central bank is expected to keep its stance unchanged, traders will eye the post-meeting policy statement for further direction.Across Europe, today’s first round of Presidential elections in Greece will keep Euro investors on their toes.
The just released inflation report has shown that annual consumer prices in the UK grew at a slower than expected pace for November. However, encouraging producer price inflation data has overshadowed a weak consumer prices report, leading the Pound to nudge higher against the majors this morning. Meanwhile, risks emanating from the Euro zone’s weak macro health, as highlighted in today’s BoE financial stability report, has limited the upside in the Pound.Across Europe, data released earlier today showed a more than expected improvement in Euro zone manufacturing activity for December. Going forward today, the flash Markit manufacturing PMI reading in the US will provide an early insight into the nation’s manufacturing sector performance, especially after yesterday’s upside surprise in industrial production data.
The Rightmove housing market report released earlier today offered further evidence that the UK housing market is slowly losing momentum. Going forward today, the CBI industrial trends survey will attract some attention among Sterling investors. However, the main focus remains on tomorrow’s consumer price inflation data especially considering the recent concerns raised by the BoE about the nation’s inflation outlook.Across the Atlantic, today’s industrial production data is expected to show a rebound for November, thereby raising hopes of a strong manufacturing performance for the final quarter of 2014. Additionally, market participants will eye the NAHB report in the US to gauge the health of the housing market for December.