Dovish BoE

•        How dovish the BoE really is?

–     BoE Governor Mark Carney and other MPC members testify to the Parliament’s Treasury Select Committee over their latest economic forecasts

–     Given the recent mixed messages on the inflation outlook market participants will be trying to decode how dovish the BoE really is

–     The November inflation report showed a significant downward revision of the short-term inflation outlook and a very dovish stance

–     On the other hand, the minutes of the Bank’s November policy meeting, revealed that seven members that voted for the rates to remain on hold had a “material spread of views”

–     Inflation report hearing will probably sound less dovish than in the November’s inflation report and will likely give more attention on the positive signs over the UK’s economic outlook, in my view

•        Overnight, Bank of Japan released the minutes of its Oct. 31st meeting where the board voted to expand monetary policy easing:

n    The 4 BoJ policymakers that opposed to last month easing, did so due to concerns over the  Bank’s credibility

•       The NZD fell after the 2 year inflation expectation drop to 2.06% in Q4 from 2.23% in Q3, its lowest level since June 2013

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    Today:

–     German: final Q3 GDP data are expected to confirm the preliminary growth figure

–     Canada: retail sales for September are expected to rebound from the previous month

–     US: the 2nd estimate of the Q3 GDP is expected to show that the US economy expanded at a slower pace than initially estimated. Other indicators include the Federal Housing Finance Agency (FHFA) home price index for September, S&P/Case-Shiller house price index for the same month and Richmond Fed manufacturing index and the Conference Board leading index both for November are also coming out.