GBP 
The annual pace of house price growth in the UK continued to soften in
November, falling from 9.0% in October to 8.5%, marking the third consecutive
month where annual growth has moderated. This is despite house prices
increasing by 0.3% month on month in November. 

EUR
Inflation in the Eurozone slowed in November to  a five-year low,

GBP 
The annual pace of house price growth in the UK continued to soften in
November, falling from 9.0% in October to 8.5%, marking the third consecutive
month where annual growth has moderated. This is despite house prices
increasing by 0.3% month on month in November. 

EUR
Inflation in the Eurozone slowed in November to  a five-year low,
prodding the European Central Bank toward expanding its unprecedented stimulus
program.  Consumer prices  however, rose 0.3 percent from a year
earlier. That was in line with median forecasts. Unemployment held at 11.5 percent
in October.

Continued low inflation is keeping pressure on the ECB to add to its existing
package of measures aimed at reviving the economy. While the slowdown is partly
related to a drop in oil prices, the euro-zone area economy is struggling to reach
the 2% targets set by the ECB. Continued low inflation is keeping pressure on
the ECB’s Governing Council to add to its package of measures aimed at reviving
the economy. Core inflation stayed at 0.7 percent in November. The only
comfort for the ECB is that the renewed drop in inflation was entirely due to
an increased year-on-year drop in energy prices. 

The ECB is already buying covered bonds and asset-backed securities as it
expects to bring its balance sheet back to the level it had at the beginning of
2012. This comes after it cut interest rates to record lows and offered
long-term loans to banks to fuel credit. 

Time is needed for the “positive effects” of the current stimulus to be felt,
Draghi said Friday. “However, should it become necessary to further address
risks of low inflation, the Governing Council is unanimous in its commitment to
using additional unconventional instruments within its mandate.” 

Today
At  9:30 am we have Manufacturing PMI figures from the UK.  Should
the figures meet forecast of 53.1, we should see some GBP strength.   This
afternoon  we have ISM Manufacturing PMI from the US, these are forecast
to come in at  58.0 which will represent a fall from last t months
figure so we could see some USD weakness if the data is not
positive. 

Key
Announcements:

09:30- GBP: UK Markit Manufacturing PMI (Oct) expected to be lower at 53.1 from
53.2
09:30- GBP: UK Mortgage Approvals (Oct) expected to be lower at
59,750 from 61,267 
15:00- USD: ISM Manufacturing PMI (Nov) expected to be lower to 58 from 59

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