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09:30 UK Industrial production (December) 0.5% 0.9% 0.4%
09:30 UK Industrial production (December) Y/Y 3.6% 4.1% 3.3%
09:30 UK Manufacturing output (December) -0.1% 0.3% 0.6%
09:30 UK Manufacturing output (December) Y/Y 4.4% 5.3% 5.6%
12:00 UK BoE meeting announcement 0.50% 0.50% 0.50%
The dollar rose as global stocks declined, boosting demand for the safety of the world’s main reserve currency.
The euro dropped for the first time in four days versus the greenback on speculation Bundesbank President Axel Weber’s exit from the race to succeed European Central Bank President Jean- Claude Trichet will delay an attempt to contain inflation by boosting borrowing costs.
Weber would leave his job as president of the German central bank about a year before his term expires in April 2012, said the person who talked to him yesterday. Weber’s resignation would open the field to replace Trichet as head of the world’s second-most-powerful central bank.
“He’s by far the most outspoken hawk on the ECB, so on the margin this probably reduces the likelihood of more aggressive rate rises moving forward,” Todd Elmer, the currency strategy at Citigroup Inc., said.
The euro weakened versus the dollar as a person said yesterday on condition of anonymity that Weber plans to step down this year.
The pound remained lower against the dollar as the Bank of England maintained emergency stimulus.
Sterling dropped as the BOE’s Monetary Policy Committee left its bond program at 200 billion pounds ($321 billion) and kept the benchmark interest rate at a record low 0.5%.
EUR/USD fell to $1.3610 low in Europe before set stable within the $1.3610/55 range.
GBP/USD fell to $1.6020 after the BOE rate decision, but then recovered to $1.6055/60.
USD/JPY rose to Y82.80 from Y82.50. Offers ahead of Y83.00.
US data starts at 1330GMT, when initial jobless claims are expected to fall 5,000 to 410,000 in the February 5 week after sharp movements in January.
US data continues at 1500GMT with Wholesale Inventories.
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