The European Central Bank is more cautious about the growth prospects but far from forgiving on inflation. The minutes of the ECB’s December meeting show that the bank was still a long way from questioning rate cuts. This is unlikely to change during next week’s meeting.
Due to the Christmas holiday, the minutes of the ECB’s December meeting are only released one week before the next meeting. The recently announced minutes from the December meeting still include some interesting insights for next week’s meeting.
The economic data calendar is expected to be quiet today, with UK retail sales being the only significant scheduled report with the ability to influence markets.
The Office for National Statistics predicts that retail sales will dip 0.5% in December, following a stronger-than-expected 1.3% growth in November.
In the United States, economic data will be limited, but December’s existing-home sales and the University of Michigan consumer sentiment index for January will be due for release, both of which are expected to show little to no change from the previous month.
Pound Sterling’s surge following mid-week inflation numbers is now providing exceptional value to customers wanting to exchange pounds into euros.