As it was largely expected the Bank of England’s Monetary Policy Committee at its meeting today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion, and so to reinvest the £4.35 billion of cash flows associated with the redemption of the January 2015 gilt held in the Asset Purchase Facility.
In the US session Unemployment Claims data was published. In the week ending January 3, the advance figure for seasonally adjusted initial claims was 294,000, a decrease of 4,000 from the previous week's unrevised level of 298,000. Analysts were anticipating decrease to 291,000. The 4-week moving average was 290,500, a decrease of 250 from the previous week's unrevised average of 290,750.
Friday's session will bring Manufacturing Production and Trade Balance data. Manufacturing Production should rise by 0.4%, while Trade Balance deficit should narrow to 9.5 billion pounds. US session will be marked by NFP figures and Unemployment Rate. NFP report is forecasted to show increase by 241,000, while Unemployment Rate is anticipated to fall to 5.7%.
Figures to watch:
Manufacturing/Industrial Production (Friday 10:30)
Trade Balance (Friday 10:30)
Non-Farm Employment Change/Unemployment Rate (Friday 14:30)
Last modified on Thursday, 08 January 2015
