To remind ourselves UK inflation increased by only 0.5% last month, the lowest level since 2000. However, Carney dismissed comparison with Eurozone in which ECB is preparing to start with QE programme, after area entered into deflation. He also added that there is possibility of BoE rising its interest rates in foreseeable future.
In the US session NAHB Housing Market Index data was released. A gauge of confidence among home builders ticked down this month by one point to 57, staying close to the highest level since late 2005. Analysts were forecasting no change. Readings above 50 signal that builders, generally, are optimistic about sales trends. January marks the seventh consecutive month of above-50 readings.
Focus of tomorrow's session will be on UK job figures and BoE Meeting Minutes. Number of unemployed is forecasted to decline by 24,900, while unemployment rate should fall to 5.9%. Analysts predict 1.7% raise in wage prices. BoE Meeting Minutes should show same voting as last month with two members against seven for the rate hike. In the US session Building Permits and Housing Starts data is scheduled for a release. Figure slightly above 1 million is forecasted for both releases, similar to last month's figures.
Figures to watch:
Average Earnings Index/ Claimant Count Change (Wednesday 10:30)
MPC Official Bank Rate Votes/ MPC Asset Purchase Facility Votes (Wednesday 10:30)
Building Permits/Housing Starts (Wednesday 14:30)
