German investor confidence jumped to the highest level in 11 months as the European Central Bank prepares for its quantitative easing programme tomorrow. The ZEW Center for European Economic Research said its index of investor confidence and climbed for a third consecutive month in January to 48.4 from 34.9 in December. Economists forecast an increase to 40.
Denmark has cut its key interest rate to prevent the Krone from strengthening in the wake of Switzerland's decision to scrap the franc's peg to the euro. There has been speculation that Denmark could follow the Swiss move by removing the Krone's link to the euro. Denmark cut its deposit rate to minus 0.2% from minus 0.05%. The lending rate was cut from 0.2% to 0.05%. It makes the Krone less attractive to investors, and eases pressure on the central bank to keep buying Euros. Denmark pegs its currency to the euro to help the country's exporters and maintain stable inflation. But the country's central bank has been forced to intervene to defend the peg as the Krone appreciated.
A gauge of confidence among home builders moved down this month by one point to 57, staying close to the highest level since late 2005, according to National Association of Home Builders/Wells Fargo data released Tuesday. Readings above 50 signal that builders, generally, are optimistic about sales trends. January marks the seventh consecutive month of above-50 readings. Also Tuesday NAHB reported that its barometer of builders' views on upcoming sales of single-family homes fell four points to 60 in January, while a gauge of their views on present sales remained at 62. Meanwhile, a barometer of prospective-buyer traffic declined two points to 44.
09:30- GBP: Bank of England Minutes
09:30- GBP: Bank of England Vote count expected to be 7-2 to remain unchanged
09:30- GBP: ILO Unemployment Rate (Nov) expected to fall from 6.0% to 5.9%
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