18 Feb 2014
European open: Focus on UK inflation numbers
FXStreet (London) - Overnight, the People’s Bank of China conducted CNY48bn of 14-day repurchase contracts at 3.8 percent, drawing down funds in the banking system. The operation, announced on the PBOC website, saw money-market rates fall to their lowest levels in three months.
By contrast, the yen tumbled after the Bank of Japan announced new measures following yesterday’s weak GDP figures. While the BoJ’s asset purchase program remains at current levels, the central bank announced that it would be doubling the size of its lending program to JPY7 trillion with a second facility alongside. It also stated that it would continue to pursue monetary easing to meet its 2 percent inflation goal.
In Europe this morning we have the release of the ZEW surveys. With upwards momentum from recent German data, consensus expectations are for a strengthening from January’s reading of 41.2 to 44.0 for the current situation with economic sentiment flat. Expectations for the Eurozone are for a rise in the index from 73.3 to 73.9.
The UK sees a slew of data this morning, however the main focus will be on the CPI numbers when we could see some downside risks to expectations of a 2 percent print, below the BoE target rate for the first time in 4 years.
After yesterday’s hiatus in the US and Canada, we have another slow day from North America. There is little in the way of Canadian data releases on the cards, while in the US, the February Empire State manufacturing index is expected to fall from 12.51 to 10.0.
By contrast, the yen tumbled after the Bank of Japan announced new measures following yesterday’s weak GDP figures. While the BoJ’s asset purchase program remains at current levels, the central bank announced that it would be doubling the size of its lending program to JPY7 trillion with a second facility alongside. It also stated that it would continue to pursue monetary easing to meet its 2 percent inflation goal.
In Europe this morning we have the release of the ZEW surveys. With upwards momentum from recent German data, consensus expectations are for a strengthening from January’s reading of 41.2 to 44.0 for the current situation with economic sentiment flat. Expectations for the Eurozone are for a rise in the index from 73.3 to 73.9.
The UK sees a slew of data this morning, however the main focus will be on the CPI numbers when we could see some downside risks to expectations of a 2 percent print, below the BoE target rate for the first time in 4 years.
After yesterday’s hiatus in the US and Canada, we have another slow day from North America. There is little in the way of Canadian data releases on the cards, while in the US, the February Empire State manufacturing index is expected to fall from 12.51 to 10.0.