Quiet Data Week Ahead
Good morning and welcome to a new week. After last weeks plethora of economic data and market activity, this week is much quieter with the main focus being on the Bank of England meeting on Wednesday leading to the rate announcement on Thursday. This is unanimously expected to remain on hold. Indeed, it seems that since his appointment, Mark Carney has been quite happy with the way things are going economically in the UK and has taken the opportunity to change how the BoE works and the make-up of the Monetary Committee.
Friday’s non-farm payroll data from the US did not bring too many surprises as we saw an additional 192,000 jobs created in the US which was slightly under what was expected but not markedly so. There is a feeling that this should be higher but a slight lack of confidence and companies investing internally as opposed to job creation means the job markets isn’t quite at potential.
In the Eurozone, there is still a bit of a fall-out from Mario Draghi’s press conference last week as what seems to be happening is the markets are looking at what may happen and what people are hinting at rather than any economic data. Whilst it is thought that the ECB is moving closer to easing of economic policy and hinting that there may be unconventional measures on the horizon, the market seems to be confused as to what these may be or how they will occur.