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Draghi and BoE’s Shafik on the radar today – Lloyds Bank

FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that the Euro area industrial production and speeches from ECB President Draghi and the Bank of England’s Shafik will generate some attention today, but the main focus this week will be on the US Federal Reserve’s rate decision on Wednesday.

Key Quotes

“We look for a small rise of 0.3%m/m for euro area industrial production in October. German output, already released, disappointed with a smaller-than-expected rise of 0.1% (excluding construction), potentially reflecting ongoing soft external demand, but outturns were somewhat stronger in France and Italy. More forward-looking survey information is due later in the week, including the flash PMIs for both manufacturing and services on Wednesday and the German IFO survey on Thursday.”

“In terms of today’s speakers, the context for any comments on policy by Mr Draghi will be the lingering disappointment from the increase in policy stimulus by the ECB on 3rd December. Some ECB speakers have since put the blame on unrealistic expectations of market participants, rather than faulty communication by the central bank. Mr Draghi could reiterate that there can be no limit to policy easing in order to meet the ECB’s inflation goal. Meanwhile, the BoE’s Shafik speaks after last week’s MPC minutes, which mentioned that wage growth has “flattened off”, were perceived to be slightly more dovish than had been anticipated.”

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