US session was marked by CPI, Industrial Production and Consumer Confidence figures. US CPI decreased 0.4% in December on a seasonally adjusted basis. Analysts were forecasting 0.3% decline. Over the last 12 months, the all items index increased 0.8% before seasonal adjustment. Core CPI was unchanged in December, following a 0.2% increase in October and a 0.1% rise in November. Analysts were predicting 0.1% rise.
Industrial production decreased 0.1% in December after rising 1.3% in November. Analysts were anticipating 0.1% growth. The decrease in December reflected a sharp drop in the output of utilities, as warmer-than-usual temperatures reduced demand for heating; excluding utilities, industrial production rose 0.7%. Manufacturing posted a gain of 0.3% for its fourth consecutive monthly increase. The index for mining increased 2.2 percent after falling in the previous two months.
While analysts were anticipating incline to 94.2 points, Prelim UoM reading on Consumer Sentiment showed incline to 98.2 points. This is the highest level in 11 years as steady job gains and plunging gas prices brightened the outlook for U.S. households.
On Monday there will be no major data releases from Eurozone. We can also expect that traders will be cautious initially in the week ahead of ECB Meeting and Press Conference scheduled for January 22. There will also be no data releases from USA, with banks being closed in observance of Martin Luther King's Day.
