GBP pushes higher after CPI prints in higher

The Euro zone GDP came in slightly below consensus at 2% y/y which was offset by the strong ZEW surveys that kept the euro in the green. Any significant developments from the euro zone policymakers will likely drive the market more than these prints up right until the leaders’ summits in March.

The UK shot up after another above inflation target CPI print and the latest letter from Mervyn King to Chancellor George Osborne was also published where he stated that “every member of the Committee is conscious that there are large risks in both directions. And no one should be in any doubt that when the balance of risks requires it, every member of the Committee is determined to act to adjust policy in order to bring the risks back into balance”.

In terms of data we have 3 biggies today; UK jobless claims, BOE inflation report and FOMC meeting minutes.  Watch your cables and dollars today!

Data today

UK Nationwide consumer confidence

UK ILO Unemployment rate – 9.30am GMT

UK Jobless claims change – 9.30am GMT

Bank of England inflation report – 10.30am GMT

US Housing Starts – 1pm GMT

US PPI – 1.30pm GMT

US Industrial production – 2.15pm GMT

Minutes of Jan 25-26 FOMC meeting – 7pm GMT