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Will BoE rise interest rates?

With no major data releases from the UK traders are focused on rate hike speculations. The CPI print could steady the pessimistic stance, but the question remains as to whether the Fed can achieve levels of inflation close to its 2 per cent target. Sterling suffered a soft finish to 2014 as markets pushed back their expectations for the first interest rate hike at the Bank of England into the end of 2015.
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Fed's Mester: US economy can handle a rate hike

Speaking for Fox Business Fed's member Mester US economy can handle rate increase. He said that US economy is at or near full employment, but there are downside risk to US from global growth. He believes that gradual upward path of rates is more important than timing. Read more...

Sterling rebounded despite rate hike concerns

After falling on Friday, Sterling managed to rebound in a less volatile Monday's session. The construction data, down 1.3 per cent on the year, were the latest to cast doubts on the pace of an economic recovery that had provoked expectations, now cooled, of a rise in interest rates around the end of this year.
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ECB ready for QE adjustment if needed

It is a steadier Monday's session with no data releases from Eurozone and with US banks being closed in observance of Columbus Day. On Friday, ECB President Mario Draghi said that the central bank is ready to adjust its large-scale asset purchase program known as quantitative easing, if needed. 
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