Daily Market Report - 25/01/2016


The UK’s retail sales figure showed consumers reined in their Christmas spending by the biggest amount in over six years but there was more cheer for Chancellor George Osborne after government borrowing dropped sharply. British consumers have been a big driver of the economy at a time of weak external demand, but Friday's data raised questions about whether they will sustain expansion as wage growth slows. The retail numbers added to signs that Britain's economy slowed late last year and Osborne will still struggle to meet his budget goals for the tax year which ends in March.


The Euro lost ground during Friday’s session after French and German manufacturing figures disappointed and Mario Draghi said he would act to improve the Eurozone’s disappointing inflation levels. European Central Bank President Draghi commented at the World Economic Forum in Davos a day after the ECB surprised markets by signalling a readiness to pursue further monetary easing at its next monetary policy meeting in March.

Sharp falls in the price of oil, slowing growth in China and steep drops in financial markets have raised new questions about the strength of Europe's economic recovery and the ECB's ability to steer inflation back up to its target level of close to two percent.

Key Announcements

09:00 – EUR - German Ifo Business Climate is forecast to  decline from 108.7 to 108.4
18:00 – EUR - ECB President Mario Draghi Speaks