The ECB is expected to expand its quantitative easing program and possibly cut rates further into negative territory at its December meeting. The Euro remains under pressure with growing concerns that the terrorist attacks in Paris could undermine the already fragile economic recovery in the euro zone.
Construction Output figures were also released for the month of September; they came in at -0.4% from a previous reading of -0.2%. Construction output yearly figures were also released and they came in at 1.8%, previous reading being -6.0%.
The number of housing starts issued in the U.S. fell in October, while building permits rose better than expected. Housing starts dropped 11% to hit 1.060 million units last month from September’s total of 1.191 million units. The figure was predicted to decline by 3.9% to 1.160 Million. The number of building permits rose by 4.1% to a seasonally adjusted 1.150 million units from September’s total of 1.105 million, this was in line with expectations.
The inflation figures we saw on Tuesday continued to have an effect on the Pound. The Bank of England has said it expects inflation to remain close to zero for the rest of this year with the continued supermarket price wars and subdued oil prices. Reinforcing expectations that interest rates will remain pegged at record lows well into 2016.
GBP: 9:30 -Retail Sales (MoM) (Oct)
Expected to fall to -0.5% from 1.7%
EUR: 12:30 – ECB Monetary Policy Meeting Accounts
USD: 13:30 – Initial Jobless Claims (Nov 13) Expected to fall to 271K from 276K