Research Team at Danske Bank, suggests that although they have postponed their expectations for a first BoE hike to Q1 17, they are still monitoring the key economic figures closely. Key Quotes “We expect that UK CPI inflation increased to 0.4% y/y in January, mainly due to base effects and that CPI core inflation being unchanged at 1.4% y/y. Today, the German ZEW expectations for January are due to be released. Due to increased global market uncertainty, we expect the figure to drop sharply. This is also in line with the decrease in the Sentix expectations, which also reflects investor confidence, and is usually a good leading indicator for the ZEW expectations. If this market uncertainty persists, it could end up being a drag on economic growth in 2016 and, in that case, we would have to revise our forecast of a reacceleration in growth. In the US, focus will be on Empire manufacturing and the NAHB housing index.” For more information, read our latest forex news.