GBP

Main data out from the UK yesterday was the
retail figures. Year on Year figures came in at 1.8%, which was a sharp drop
from the forecast of 3.1%. Month on Month we have seen sales fall by 0.7%. This
shows that consumer spending has dropped off considerably over the last month.

Bank of England Markets Director Paul Fisher said
the U.K.’s trade deficit is inconsistent with a stronger pound exchange rate.

GBP

Main data out from the UK yesterday was the
retail figures. Year on Year figures came in at 1.8%, which was a sharp drop
from the forecast of 3.1%. Month on Month we have seen sales fall by 0.7%. This
shows that consumer spending has dropped off considerably over the last month.

Bank of England Markets Director Paul Fisher said
the U.K.’s trade deficit is inconsistent with a stronger pound exchange rate.

“We are still, as a
nation, running a large deficit in terms of our external trade,” Fisher said in
an interview on BBC Radio Five Live today. “That’s not consistent with a
stronger exchange rate. A stronger exchange rate in the long run makes us all
better off. In the short run, a stronger exchange rate discourages exports.”

EUR

GDP Figures were released
yesterday for the Eurozone area, with a 0.1% per cent growth recorded. This is
a drop from 0.3% from the previous quarter.

Several economies
in the Euro area actually shrank in the 3^rd quarter, most notably
France and Italy, whose economies contracted 0.1%.

Greece shrank by -0.3%
which is an improvement on the previous quarters loss of -3.8%

Germany grew by
0.3%, however, this was quite a large slowdown from 0.7% in the previous
quarter.

Spain saw growth of
0.2%.

These GDP figures
seem to back up Draghi’s decision to cut interest rates in the area to try and
stimulate growth.

USA

Janet Yellen spoke
yesterday and signalled her intentions for when she is elected Fed Chairman.
She says she will carry on with the banks quantitative easing programme until
she sees an improvement in the USA economy.

Also trade balance
statistics showed an increase of –US$41.7B from an expectation of –US$39B, with
exports declining for the 3^rd month in a row.

Today

Final reading for
Eurozone inflation figures are due for release this morning, with expectations
that the rate has fallen to 0.7%. This will solidify Draghi’s decision to cut
interest rates in the Eurozone.

Industrial production
for the US is expected to slow to 0.2% from 0.6%.

Key Announcements:

10.00am – EUR –
Consumer Price Index (Oct): Expected to be revised lower to 0.7%.

13.30pm – USD – NY Empire
State Manufacturing Index (Nov): Expected to increase to 5.00.

14.15pm – USD –
Industrial Production (Oct): Expected to slow to 0.2%.