Bank of England Governor Mark Carney was the main focus yesterday as he delivered a testimony to lawmakers in London. Carney said he would decide this year if he would ask to stay on for a full eight year term as Governor, which was probably his most explicit hint so far that he will do so. Carney also remained dovish, suggesting that three years of non-stop growth and the lowest unemployment rate in a decade are still not enough to raise interest rates just yet.
Across the pond, the US released two pieces of key tertiary sector figures. Firstly services PMI decelerated for the second straight month in early January, registering a worse than expected 53.7. Shortly after CB Consumer Confidence was released. The figure exceeded economists’ consensus, posting a 98.1, its best reading since September 2015.
The biggest day of the week as the FOMC first meeting of the year takes place with the rate decision and statement set for release. As previously stated, the Fed are expected to raise rates four times in 2016, the market will be looking for direction as to when or whether or not these will occur. Market focus will also be on the FOMC’s view on the global economy given the recent turmoil in China.