Market based inflation expectation measures worsened, and economic slack is still sizeable, therefore action is needed to achieve inflation target. Action will underpin inflation expectations, measures will ease policy stance further, and help push inflation higher, though inflation is seen very low and negative in coming months and is unavoidable. We can expect inflation rise in in 2015 & 2016.
In the US session Unemployment Claims data way released. In the week ending January 17, the advance figure for seasonally adjusted initial claims was 307,000, a decrease of 10,000 from the previous week's revised level. Analysts were anticipating decrease to 301,000. The previous week's level was revised up by 1,000 from 316,000 to 317,000. The 4-week moving average was 306,500, an increase of 6,500 from the previous week's revised average.
On a Eurozone data front tomorrow, French, German and Eurozone Manufacturing and Services PMI data will be released. Both French Manufacturing and Services PMI are expected to increase to 48.1 and 50.9 points respectively. Analysts also predict incline in German PMI data, to 51.8 for Manufacturing PMI and 52.6 for Services PMI. Eurozone Manufacturing PMI should raise to 51.0, while Services is anticipated to increase to 52.1. In the US session Existing Home Sales figures are scheduled for a release. Figure of around 5.08 million is forecasted.
Figures to watch:
French Flash Manufacturing PMI/French Flash Services PMI (Friday 9:00)
German Flash Manufacturing PMI/German Flash Services PMI (Friday 9:30)
Flash Manufacturing PMI/Flash Services PMI (Friday 10:00)
Existing Home Sales (Friday 16:00)
