4:30 am UK Jan Merchandise Trade Balance (exp GBP -5.8 bln, prev GBP -6.1 bln) UK 4:30 am Jan Manufacturing Production (exp 0.2%, prev 0.3%) UK 4:30 am Jan Industrial Production (exp 0.2%, prev 0.2%) 6:00 am GER Jan Industrial Production (exp 3.2%, prev 3.5%) 7:00 am Bank of England Interest Rate Announcement (exp 4.50%, prev 4.50%) 8:30 am US Weekly Jobless Claims (exp 290K, prev 294K) US Jan Merchandise Trade Balance (exp $-66.6 bln, prev exp $-65.7 bln) CAN Jan Jan Merchandise Trade Balance (exp C$ 7.4 bln, prev C$ 7.7 bln) 9:00 am Fed Board Governor Kohn Speaks. 1:00 pm NY Fed President Geithner Speaks.


Yen stabilises after an initial drop across the board despite the Bank of Japan’s decision to end its quantitative easing policy . BoJ Gov Fukui said the BOJ left the amount of liquidity target reserves at 30 trln after facing government opposition against making the shift today. The bank added that it will take a few months to reduce that target. The BoJ will target the unsecured overnight call loan rate, and aim at keeping it neat 0% as it drains the excess reserves made available for lenders.


In a gradual move towards transparency, the BoJ said it is establishing a price stability framework used for guiding market expectations. Although it did not specify any details, the Bank will likely adopt a target for annual core CPI between 0 and 2%, which it will use for gauging the extent of the required shift over time. Separately, the bank maintained its outlook that the economy “is expected to continue to recover steadily”, but upgraded its assessment on consumption and household investment.