12 Dec 2014

Sterling Eyes Global Cues for Further Direction

Data just released has indicated that the construction output in the UK rose less than anticipated, raising fears that growth could be slowing. Investors now await the crucial consumer price inflation numbers next week, particularly considering the dovish tone of the BoE’s latest quarterly inflation bulletin. Across the Atlantic, after yesterday’s upbeat retail sales report in the US showed that domestic spending remained well supported last month, traders will eye today’s preliminary Reuters/Michigan consumer confidence reading later today to gain a better insight into consumer spending for the final quarter of 2014. Meanwhile, in the Euro zone, yesterday’s weaker than expected response to the ECB’s TLTRO auction strengthened prospects of an outright bond purchase programme.