The economic docket was relatively light yesterday, however we were not short on news with Inflation returning to Greece and a commodity recovery taking place yesterday morning. Firstly both Brent and West Texas Oil traded above the key psychological level of $31 a barrel yesterday, reversing the selloff we saw earlier in the week where the WTI dropped below $30. The Bloomberg Commodity Index fell to its lowest level since 1991 on Tuesday before retracing its losses yesterday. On the docket Crude oil inventories in the US posted less than expected, recording a 0.2M against a forecast 1.9M.
For the last three years inflation in Greece has been depreciating, however yesterday Greece registered a 0.4% increase for November. While the positive number can be seen as a move in the right direction for Greece, much of the increase in prices was driven by a new sales tax. Trouble however still looms in Greece as they are still waiting to complete the review of its most recent bailout.
The BoE takes center stage today despite the early indications of a rate rise being pushed back till 2017. Last week’s data was soft resulting in the pull back of GBP/EUR and GBP/USD. As an importing nation this could actually help and offset the decline oil which could boast inflation. However, the format of the BoE meeting has changed shape recently resulting in the minutes, voting break down and decision all released at the same time. The market will be keen to see if the committee mirrors the dovish view on interest rates as the market. Later in the afternoon investors will be keen to see if the US weekly jobless claims echoes the same sentiment as the bullish Non-Farm Payrolls.