Bank of England Governor Mark Carney spoke yesterday in front of the Treasury Committee, regarding UK’s membership of the European Union. Governor Carney said that Britain’s membership of the EU has re-inforced the “dynamism of the UK economy”. The relationship between the UK and EU has helped Britain grow according to Carney. The BoE Governor also emphasized that the Central Bank are not taking sides in the EU referendum as the Brexit campaign continues to heat up.
The economic calendar was relatively light. Chinese Trade balance released early morning yesterday was the only high tier data posted. Chinese Trade Balance depreciated to 210B from a previous 406B, dropping nearly half of its Trade balance to a one year low. The UK BRC retail sales monitor was also released early yesterday morning. The figure dropped substantially to 0.1%, a 2.5% drop from last year’s reading.
Today, we gain further insight into how the UK has been performing this year, with the release of the monthly Manufacturing and Industrial Production figures. Both currently in negative territory for January, the markets will watch to see if the bearish data of late will continue. Another poor show of data will start to flag the concerns that a downturn of growth is gathering momentum for the UK economy. From the US, the oil inventories gauge is posted, which shows how many excess barrels of crude oil is held by commercial companies in the last week.