Europe, including the United Kingdom, are currently experiencing a weaker period. Industrial production in the UK is weakening along with the dynamic of wages and inflation. In the same time in Europe, stagnation becomes increasingly likely and the German economy gets out of breath.

Meanwhile, data coming from the USA are mixed, mainly when it comes to inflation. Employment and sentiment indicators are in the good condition – also the housing market improvement is doing its job.

CC_bank_of_england_pound_funt_gbp-300x224Today markets mainly await BoE minutes. They will be interpreted in the new circumstances of a clear inflation weakening. Data was published yesterday so MPC could not know about them. What MPC knows about inflation stems from a recently published inflation report, which had a slightly dovish tone – it was deepened by BoE governor, Mark Carney, during the press conference.

Today, we should also wait for FOMC minutes – quite important for trading decisions. First of all, protocols may show the degree of difference and the divergence line inside the Committee since the hawks began loudly emphasize their views. At least three FOMC members – Plosser, Fisher and Goerge – believe that interest rates should be raised sooner rather than later. This is due to the lack of economic outlook conformity. During the last FOMC meeting, Plosser disagreed with the economy description in the monthly statement. So far, the dollar strengthens.

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