Lots of numbers so what does it all mean
BOE
The BOE will be mildly happier with their sets of data. Price falls slowed on the producer side and rose on the inflation and retail side. There's not enough here to change the mood of the pound fundamentally but it's a small step in the right direction. The core numbers were the main positive. Another couple of reports like that might be enough to see the quid find some sort of base
ECB
The unchanged final CPI numbers will keep expectations for the ECB meeting on a dovish tilt. The chatter after the ECB meeting can be another one of seeing signs of improvement while keeping a heavy emphasis on the downside risks.
The latest ECB bank lending survey is probably the best news for the ECB today. The further easing of conditions and increased appetite to borrow by firms and consumers will be very welcome. The ECB want to see the transition of QE through the system and this is a strong signal of that. Some people may tie increased borrowing to rising debt levels but Europe's credit growth had ground to a halt and this is a sign that the wheels have been oiled further. In all economies you need a decent amount of credit flow and we're a long way from it becoming bubbly. There's been a huge amount of deleveraging over the last few years and now companies and households should (heavy emphasis on should) be in a better place to take on debt to move forward
The price action tells the real story. The pound has already shown it will need more than today's data to put in a real upside run. The labour report tomorrow may help take more of the bearish themes off. Right now the downside looks like it might be the hardest work but you can never say never with the quid these days
The euro has virtually done nothing after it's data, though again there's nothing here that suggests there's a fundamental reason to push it lower. If that is the case then there's only really one other direction but it doesn't look like anyone wants to get hold of it by the scruff of the neck
