Daily Market Report - 18/02/2016


The jobless rate in the U.K. held steady at a ten year low in December, while the average earnings index increased in line with expectations. The Office for National Statistics said that the rate of unemployment held at 5.1% in the three months to December, it was expected to fall to 5.0%.
The Claimant Count (the number of people who are receiving benefits) fell by 14,800 in January, compared to expectations for a decrease of 3,000 people, and following a drop of 15,200 a month earlier. The average earnings index including bonuses came in line with forecasts at 1.9% in the three months to December. Excluding bonuses wages rose by 2.0% beating expectations for a 1.8% increase. 


U.S. housing starts fell unexpectedly in January due to bad weather disrupting building projects in some parts of the country, in what could be a temporary setback for the housing market. They fell 3.8 percent to a seasonally adjusted annual pace of 1.099 million units. Building permits also fell by 0.2 percent to a 1.202 million-unit rate last month.
The Federal reserve minutes supported a growing view that the Fed would back away from a signal it sent in December about possibly raising rates four times this year due to the recent slowdown in global growth and steep stock market drops. Federal Reserve policy makers debated their outlook for interest rates last month expressed concern that the fall in commodity prices and the rout in financial markets increasingly posed risks to the U.S. economy.
"The minutes are a more dovish tint to the Fed's language and, on balance, likely suggest a lower likelihood of the Fed raising rates in March," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in New York. 

Key Announcements

12:30 – EUR: Monetary Policy Meeting Accounts
13:30 – USD: Initial Jobless Claims (Feb 12) Previous being 269K
13:30 – USD: Continuing Jobless Claims (Feb) Previous being 2.239 Mil