In the US session ADP job figures and Trade Balance data was released. Private sector employment increased by 241,000 jobs from November to December.Analysts were predicting smaller incline by 230,00. Payrolls for businesses with 49 or fewer employees increased by 106,000 jobs in December, up from 99,000 in November. Employment among companies with 50-499 employees rose by 70,000, down slightly from November’s increase of 73,000.
US goods and services deficit was $39.0 billion in November, beating forecasts on a decline to $42.3 billion and down $3.2 billion from $42.2 billion in October, revised. November exports were $196.4 billion, $2.0 billion less than October exports. November imports were $235.4 billion, $5.2 billion less than October imports.
However, the focus of the session was on FOMC Meeting Minutes. Despite strong GDP growth and unemployment constantly falling latest FOMC Meeting Minutes showed that “most participants thought the reference to patience indicated that the committee was unlikely to begin the normalization process for at least the next couple of meetings,” meaning that we cannot expect interest rate hike before April.
The main problem remains inflation concerns. “A number of participants saw a risk that it could run persistently below their 2 percent objective, with some expressing concern that such an outcome could undermine the credibility of the committee’s commitment to that objective,” the minutes showed.
As for tomorrow House Price Index data will be released as well as BoE's interest rate and asset purchase decision. House prices are expected to increase by 0.3%, while interest rates should remain unchanged at 0.5%. In the US session Unemployment Claims data will be released. Decrease to 291,000 is anticipated.
Figures to watch:
Halifax HPI (Thursday 9:00)
BoE Interest Rate/Asset Purchase decision (Thursday 13:00)
Unemployment Claims (Thursday 14:30)
