GBP
UK inflation halved in December to the lowest level on record as the sharp
drop in global oil prices fed through to petrol pumps and the supermarket price
war cut consumers shopping bills. Inflation fell to 0.5% in December from 1% in
November taking consumer prices index (CPI) to the joint lowest level since
equivalent records began in 1989.

GBP
UK inflation halved in December to the lowest level on record as the sharp
drop in global oil prices fed through to petrol pumps and the supermarket price
war cut consumers shopping bills. Inflation fell to 0.5% in December from 1% in
November taking consumer prices index (CPI) to the joint lowest level since
equivalent records began in 1989.

Governor Carney said inflation could slow further in the coming months,
backing his argument to keep interest rates at a record low. Plunging oil costs
and supermarket price wars have eaten into inflation, and the outturn
represents “good news” for British consumers, Carney said. The outlook for
inflation in the U.K. remains weak. Oil slipped below $45 a barrel yesterday
and a global supply glut has pushed prices down to the lowest in more than 5
1/2 years. Separate data showed factory-gate prices, a leading indicator of
inflation, fell the most since 2009. Carney said inflation may continue to drift
down in the coming months.

EUR
The euro fell after ECB Governing Council member Ewald Nowotny said during a
panel discussion in Vienna that policy makers must treat the threat of
deflation seriously and shouldn’t delay a response. Executive Board member
Benoit Coeure was quoted in an interview saying the ECB is “in a position to
take a decision on Jan. 22.”

Also Greek Finance Minister Gikas Hardouvelis said the nation could exit the
euro zone by accident if a new government fails to reach an agreement with
international creditors soon after this month’s election.

USD
Job openings climbed in November to the highest level in almost 14 years as
the strengthening U.S. economy fuelled demand for labour. The number of
positions waiting to be filled rose by 142,000 to 4.97 million in November, the
most since January 2001, a report from the Labour Department showed today. The
pace of hiring cooled and fewer Americans quit their jobs.

Gains in hiring, waning dismissals and rising confidence underscore a
vibrant labour market that in 2014 marked its strongest performance since 1999.
Tuesday’s data will help policy makers assess the progress on employment and
growth as they consider when to begin raising interest rates. The median
forecast projected 4.85 million openings in November. The October reading was
4.83 million.

Key Announcements
13:30 USD – US Retail sales figures (Dec) expected to fall to -0.1% from
0.7%
14:15 GBP – BOE’s Governor Carney speech

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