Currency-wise, the dollar was under some downward pressure. The dollar fell 0.3-0.4 percent against the euro, pound, and yen. The weaker dollar tone was related to a slight drop in US rate forecasts.
Meanwhile, UK market rate expectations fell slightly after BoE Governor Bailey’s dovish remarks to the Treasury Select Committee. Governor Bailey remarked that the BoE does not require inflation to return to goal before lowering interest rates.
Today’s flash measurement of Eurozone consumer confidence for February is due. The indicator is expected to increase somewhat, but it is unlikely to affect the euro.
The minutes of the US Federal Reserve’s late January policy meeting will be revealed this evening. The outcome of that meeting disappointed consumers because it did not provide a clear signal on the timing of the first interest rate drop.
In addition, since then, different economic statistics have led markets to delay the beginning of the reduction cycle until at least the middle of the year.