There were no data releases from the Eurozone yesterday. European Central Bank (ECB) boss Mario Draghi has hit back at critics of the bank's decisions to keep interest rates low and launch a €1.5 trillion (£1.1 trillion) asset purchase programme. Draghi, who last week hinted interest rates might be cut further, said low interest rates were not punishing savers. He said inflation adjusted returns did not tell this story and that a hike in interest rates would "simply push us back into recession and rates would stay lower for longer."
In the US session CB Consumer Confidence figures were released. The Conference Board Consumer Confidence Index, which had increased in December, improved moderately in January.
The Index now stands at 98.1, up from 96.3 in December. Analysts were not forecasting any change. The Present Situation Index was unchanged at 116.4, while the Expectations Index increased from 83.0 to 85.9 in January.
There will be no data releases from Eurozone tomorrow, so we can expect another steadier session. In the US session New Home Sales figures will be released but the focus will be on FOMC interest rate decision and the following statement. New Home Sales should show annual rate of 503,000. Fed is not expected to change its interest rates but following statement shoulf bring some volatility to the markets.
Figures to watch:
New Home Sales (Wednesday 15:00)
Federal Funds Rate/FOMC Statement (Wednesday 20:00)
