UK employment data came out better than expected this morning with the headline figure for average weekly earnings for the last three months at 2.9% expected at 2.5%. Attention will turn to the treasury select committee meeting this afternoon of which MPC members will be listened to closely for any overly hawkish comments.
Earlier this morning we had Consumer Price Index (CPI) figures for the Eurozone which disappointed the market slightly with the year on year CPI figure underperforming at 0.1% with 0.2% expected. The European Central Bank (ECB) Vice president Vitor Constancio, when questioned in a press conference, noted that there is a scope to increase Quantitative Easing (QE) if necessary.
The US also released their CPI figures this afternoon with core CPI slightly disappointed at 1.8% expected 1.9%. This caused an initial sell off but the dollar appears under a second wave of pressure causing further losses. The CPI figures will be taken into account before the all-important FOMC meeting tomorrow.