Yesterday’s main focus was the ECB rate decision and President Mario Draghi’s press conference that followed shortly after. We also had a raft of high tier US data released yesterday afternoon. Firstly, Mario Draghi said the ECB may bolster stimulus in March as threats to the Euro-area recovery mount. The Euro weakened after this comment as Draghi alluded to further stimulus this year. Officials kept interest rates unchanged at record lows of 0.05% shortly before the press conference begun.
Across the pond, the US released a raft of mixed data yesterday afternoon. The weekly jobless claims figure posted a worse than expected 293k its highest reading in seven months. However, the Philly Fed manufacturing helped to cap the Greenbacks losses with a better than forecast -3.5 against -5.8. Price action yesterday however was driven by the Euro and ECB President Mario Draghi.
Once again the UK is under the microscope. This time retail sales from the UK are due for release. The tertiary sector accounts for nearly 70% of economic activity in the UK so this will be closely scrutinised. In addition, we also have the PMI manufacturing and service data from Germany whilst the World Economic Forum continues in Davos. In the US we have another piece of housing data with the release of the existing home sales.