Key figures call for policy shift ahead of ECB meeting; US markets rebound from North Korea jitters

A dearth of economics data this morning means traders’ focus is turning towards the European Central Bank’s policy meeting tomorrow when president Mario Draghi could announce the winding down of its quantitative easing programme. 

No pre-match nerves are getting the better of the euro on the forex markets, however, with the currency’s strength one of the main reasons the central bank could hold off in order to ensure that inflation isn’t weakened any further. 

The pound has held its gains against the dollar from yesterday afternoon when US Federal Reserve policy maker Lael Brainard said that inflation was falling well short of its target and warned other rate-setters to be cautious when deciding whether to hike rates.

The Fed’s Beige Book, an analysis of the current state of the American economy, is the highlight of the US session with investors hunting for clues on the next monetary policy move at the central bank.

Interim results: Harworth Group, Gama Aviation, PPHE Hotel Group, Faron Pharmaceuticals, Vectura Group, WANdisco

Full-year results: Diurnal Group

AGM: Inspirit Energy Holdings, Hornby, The Fulham Shore, Oneview Group, Sports Direct International, Severfield, Funding Circle SME Income Fund, Trakm8 Holdings

Economics: BRC Shop Price Index y/y (UK), Inflation Report Hearings (UK), Trade Balance (US), Retail PMI (EU), Factory Orders m/m (GER)

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