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Risk momentum continues to be shaky, with stock markets dipping yesterday. The move was likely triggered by oil prices falling once again and confirmation from the Exxon Mobile Corporation of its weakest annual results in over ten years.
In addition, US Federal Reserve voter Esther George optimistically indicated in her speech yesterday that the Fed may continue down the path of raising rates despite the global growth concerns. A Fed bent on rate rises weakens risk appetite, as there is uncertainty around the impact that further rate increases will bring.
Data from eurozone, UK and US ahead
Today we have eurozone retail sales data, which may show improvements on the back of the lower oil prices and growth in the labour market. For the UK we have the UK services Purchasing Managers’ Index, and it’s expected we’ll see moderate growth – that could support a contribution to gross domestic product.
Later we’ll have US non-manufacturing data, which is also expected to show a continued upward trend. Today’s data is a preamble and all eyes are on the UK’s “Super Thursday” figures (4 February) and the US non-farm payroll data on Friday.
The pound is struggling with further momentum, with the prospect that the Bank of England will trim its inflation and growth forecasts tomorrow. It’s also likely that Monetary Policy Committee member Ian McCafferty will no longer be voting for a rate rise (as he has in recent meetings), thereby reinforcing the dovish tone from the Bank.
Regards All.
In addition, US Federal Reserve voter Esther George optimistically indicated in her speech yesterday that the Fed may continue down the path of raising rates despite the global growth concerns. A Fed bent on rate rises weakens risk appetite, as there is uncertainty around the impact that further rate increases will bring.
Data from eurozone, UK and US ahead
Today we have eurozone retail sales data, which may show improvements on the back of the lower oil prices and growth in the labour market. For the UK we have the UK services Purchasing Managers’ Index, and it’s expected we’ll see moderate growth – that could support a contribution to gross domestic product.
Later we’ll have US non-manufacturing data, which is also expected to show a continued upward trend. Today’s data is a preamble and all eyes are on the UK’s “Super Thursday” figures (4 February) and the US non-farm payroll data on Friday.
The pound is struggling with further momentum, with the prospect that the Bank of England will trim its inflation and growth forecasts tomorrow. It’s also likely that Monetary Policy Committee member Ian McCafferty will no longer be voting for a rate rise (as he has in recent meetings), thereby reinforcing the dovish tone from the Bank.
Regards All.