What does have a positive impact on Sterling are recent statements by BoE officials that interest rate hike could happen sooner than market expects as well as that BoE will do everything to take inflation back on the course, that is its 2% target. Due to oil prices decline consumers are willing to spend more so this is also boosting UK economy, especially with unemployment decline in mind.
US session was marked by FOMC Statement. As it was largely expected Fed left its interest rates unchanged." As it was the case in December it was once again repeated that we have to "be patient in beginning to normalize the stance of monetary policy." "If incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated", it was emphasized.
"The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run", it was said in conclusion.
Tomorrow's session will bring Nationwide HPI and CBI Realized Sales data from the UK. House prices are forecasted to incline by 0.4%, while CBI Realized Sales Index should show a balance of +31%. In the US session Unemployment Claims figures are scheduled for a release. A decrease to 301,000 is anticipated.
Figures to watch:
Nationwide HPI (Thursday 8:00)
CBI Realized Sales (Thursday 12:00)
Unemployment Claims (Thursday 14:30)
