20 Jan 2014
European open: A quiet session with focus on the week ahead
FXstreet.com (London) - With US markets closed, and very little in the way of European data on the cards, today should be a slow start to the week.
Chinese data shows expected deceleration
Chinese data released overnight came in at or around consensus, falling in line with expectations of a deceleration in the Chinese economy. Fourth quarter GBP printed at consensus, up 7.7 percent year-on-year. December retail sales gained 13.6 percent year-on-year, also in line with consensus. Fixed asset investment just missed expectations at 19.6 percent versus 19.8 percent. December industrial production printed at 9.7 percent year-on-year, just below consensus expectations of 9.8 percent.
RBNZ LTV policies taking effect
In New Zealand, REINZ house prices showed a fall of 1 percent month-on-month, falling from a 1.2 percent rise in November. Home sales fell 1.1 percent year-on year. While the numbers gave NZD a small knock, they show that the Reserve Bank of New Zealand’s loan-to-value ratio restrictions on residential property are having some intended consequences.
German purchaser price index numbers came in just higher than expected, up 0.1 percent compared to expectations of a flat print. Italian industrial orders numbers for November are due at 9:00 GMT after which all is quiet in Europe.
UK unemployment numbers on Wednesday in focus
In the UK, the main focus of the week is on Wednesday’s employment numbers as well as the release of the Bank of England monetary policy committee minutes from its 10 January meeting. The UK unemployment rate expected to fall another 0.2 percent to 7.2 percent, bringing it into touching distance of Mark Carney’s 7.0 percent threshold for the possibility of a rate hike. The minutes will be under scrutiny for clues as to whether the BoE intends to lower this threshold and allow the momentum of declining unemployment to run further before it increases base rates.
Chinese data shows expected deceleration
Chinese data released overnight came in at or around consensus, falling in line with expectations of a deceleration in the Chinese economy. Fourth quarter GBP printed at consensus, up 7.7 percent year-on-year. December retail sales gained 13.6 percent year-on-year, also in line with consensus. Fixed asset investment just missed expectations at 19.6 percent versus 19.8 percent. December industrial production printed at 9.7 percent year-on-year, just below consensus expectations of 9.8 percent.
RBNZ LTV policies taking effect
In New Zealand, REINZ house prices showed a fall of 1 percent month-on-month, falling from a 1.2 percent rise in November. Home sales fell 1.1 percent year-on year. While the numbers gave NZD a small knock, they show that the Reserve Bank of New Zealand’s loan-to-value ratio restrictions on residential property are having some intended consequences.
German purchaser price index numbers came in just higher than expected, up 0.1 percent compared to expectations of a flat print. Italian industrial orders numbers for November are due at 9:00 GMT after which all is quiet in Europe.
UK unemployment numbers on Wednesday in focus
In the UK, the main focus of the week is on Wednesday’s employment numbers as well as the release of the Bank of England monetary policy committee minutes from its 10 January meeting. The UK unemployment rate expected to fall another 0.2 percent to 7.2 percent, bringing it into touching distance of Mark Carney’s 7.0 percent threshold for the possibility of a rate hike. The minutes will be under scrutiny for clues as to whether the BoE intends to lower this threshold and allow the momentum of declining unemployment to run further before it increases base rates.