GBP falls after BoE minutes
Bank of England minutes were released at 9:30 GMT and as expected, showed a unanimous vote of 9-0 for continued low interest rates. We also had figures released for UK jobless claims which fell by 27,600 which was better than the expected 20,000. Also, the unemployment rate continues to hover around the “magical” 7% level, with the figures coming out at 7.2%.
The market reaction to these figures has see GBP initially weaken by about 0.5 cent against both USD and the Euro.
In the US, the PPI data, housing starts and permits will be published this afternoon. The PPIU data is expected to remain stable whilst housing starts and permits are expected to be relatively negative due to adverse weather conditions. There will also be focus on minutes from the FOMC’s January meeting. The release will be scrutinised for any dissent or hesitation among voting members over the continuing tapering of the Fed’s quantitative easing program.
There is nothing really coming out of the Eurozone today but it remains interesting to see how far the Euro can rise before the ECB considers it an additional threat to lower inflation