The Eurozone CPI posted as expected at 1.3%, showing a slight slowdown from the previous reading. With strong growth reports and dropping unemployment, it remains a mystery for the policy makers as to why inflation continues to slow. However, the ECB were provided with a small piece of good news today as the core CPI figure saw a small uptick from last month, posting 1%, meaning core inflation may be about to move in the right direction. Euro saw a small boost with the reading, however the ECB still have a long way to go to reach the targeted 2%.
Across the pond, the January ADP payroll figure posted a bullish 234k beating the 186k expected. The market will now focus on the non-farm payroll release on Friday to see if it can bounce back from the bearish 148k last month.
This evening, the FOMC will be releasing their latest monetary policy and for Janet Yellen this will be her final meeting. The markets are predicting this to be something of a non-event, with the Fed not wanting to rock the boat too much before Jerome Powell takes over. The Fed are not expected to raise rates tonight, with the markets predicting the first rate hike of the year in March. With no press conference following the statement release the FOMC are expected to add some hawkish changes to the normal statement.