Coming up, it is an important morning for European data with Consumer Confidence (Dec) and Retail Sales (Nov) due. There are expected to be slight improvements in Consumer Confidence (exp: -16, prev: -17), but Retail Sales are expected to remain subdued at 0.0% MoM - the same as the reading in the previous month. Given that this morning's German Retail Sales data has already been released, and was distinctly disappointing (-1.1% MoM vs. +0.3% expected, prior month revised lower from 0.5% to 0.0%), we may well see a downside surprise compared to analyst forecasts. EURUSD remains within consolidation mode for the time being, and looking at the daily chart we see a flag pattern emerging with downside support coming in around 1.4280 levels. A daily close below here would suggest a continuation of the move lower (after the break of the 12-month uptrend on 4th Dec), and would open up the downside for a move towards 1.4000 levels.
Today's BoE rate decision is not expected to produce any noteworthy developments; with forecasts for no change in rates from their current 0.50% levels, and no increase to the asset purchase target (currently GBP200bn). This afternoon's docket includes US claims data, and Canadian Ivey PMI.