The British pound posted modest gains on the day after it became evident that the UK government was pursuing a plan B. The details include amending the Irish border backstop arrangement as well.
On the economic front data from Germany showed that producer prices fell 0.4% in December. This was more than forecasts of a 0.1% decline estimated by economists. The December’s declines come following a 0.1% increase in the month before.
The Bank of Japan’s core inflation rate increased 0.4% in December. This was slightly lower than the median estimates which forecast a 0.5% increase. The BoJ’s core inflation rate rose 0.5% in November.
The European trading session will start off with the UK’s monthly jobs report. The average earnings index should remain steady, rising by 3.30%. This marks the same pace of increase compared to the previous period. The unemployment rate remains steady at 4.1%.
From the Eurozone, the German ZEW economic sentiment index is due later in the data. Economic sentiment drop even more with the index expected to fall to -18.8, down from -17.5 previously. Eurozone’s ZEW economic sentiment index is next which should ease to -20, compared to -21.0 prior.
The NY trading session will see Canada’s manufacturing and wholesale sales coming out. In the U.S. the existing home sales report is due to show a modest slowdown with 5.27 million units in December compared to 5.32 million units previously.
Later in the overnight session, New Zealand will be releasing its quarterly inflation report. New Zealand inflation should remain flat during the fourth quarter of 2018.