Fed expected to cut rates

The main focus in the US will be directed towards the Federal Open Market Committee meeting on Tuesday. The market is expecting the Federal Reserve to announce another rate cut. This week there will be the Industrial Production figures and the Producers Price Index data for February. The current account balance for the fourth quarter of 2007 will also be released.

In the UK, the minutes of the last Monetary Policy Committee (MPC) meeting, showing the voting pattern behind the March interest rate decision will be published. The market will look also towards data related to the Consumer and Retail Price Index for February, and the labour market report.

In the Eurozone, attention will focus on the manufacturing and services Producer Manager Index (PMI). Markets will also be looking at figures related to the eurozone employment for the fourth quarter of 2007 and those relating to January's construction output. The effect of the euro hike on net trade may be assesed through the January trade balance figures. The week will also provide figures relating to consumer spending, consumer confidence and industrial orders for the Eurozone's underlying economies.

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