EUR
German investor confidence jumped to the highest level in 11 months as the
European Central Bank prepares for its quantitative easing programme tomorrow.
The ZEW Center for European Economic Research said its index of investor
 confidence and  climbed for a third consecutive month in
January to 48.4 from 34.9 in December. Economists forecast an increase to 40.
 
Denmark has cut its key interest rate to prevent the Krone from strengthening

EUR
German investor confidence jumped to the highest level in 11 months as the
European Central Bank prepares for its quantitative easing programme tomorrow.
The ZEW Center for European Economic Research said its index of investor
 confidence and  climbed for a third consecutive month in
January to 48.4 from 34.9 in December. Economists forecast an increase to 40.
 
Denmark has cut its key interest rate to prevent the Krone from strengthening
in the wake of Switzerland’s decision to scrap the franc’s peg to the euro.
There has been speculation that Denmark could follow the Swiss move by removing
the Krone’s link to the euro. Denmark cut its deposit rate to minus 0.2% from
minus 0.05%. The lending rate was cut from 0.2% to 0.05%. It makes the Krone
less attractive to investors, and eases pressure on the central bank to keep
buying Euros. Denmark pegs its currency to the euro to help the country’s
exporters and maintain stable inflation. But the country’s central bank has
been forced to intervene to defend the peg as the Krone appreciated. 

USD
A gauge of confidence among home builders moved down this month by one
point to 57, staying close to the highest level since late 2005, according to
National Association of Home Builders/Wells Fargo data released Tuesday. Readings
above 50 signal that builders, generally, are optimistic about sales trends.
January marks the seventh consecutive month of above-50 readings. Also Tuesday
NAHB reported that its barometer of builders’ views on upcoming sales of
single-family homes fell four points to 60 in January, while a gauge of their
views on present sales remained at 62. Meanwhile, a barometer of
prospective-buyer traffic declined two points to 44.

Key Announcements:
09:30- GBP:  Bank of England Minutes
09:30- GBP:  Bank of England Vote count expected to be 7-2 to remain
unchanged
09:30- GBP:  ILO Unemployment Rate (Nov) expected to fall from 6.0% to
5.9% 

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