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The sliver  lining just became less shiny. The original print showed a rise from 0.7% to 0.8%, giving  ammunition to those  claiming that the drop in prices is concentrated in oil prices. The headline CPI was confirmed at a drop of 0.2%, as expected.

EUR/USD maintains the trading range of 1.1610 – 1.1640.

It already seems that an announcement about QE in the euro-zone is a done deal for the January 22nd meeting.

The market expects a program in a size of 500 billion euros or so. The shock decision from Switzerland to remove the floor under 1.20 seems to cement the notion and seems to have come as a preparation for the move.

Comments released earlier by ECB member Coeure made it clear that QE is going to be big. He said that QE would need to be big to be efficient.

Here are 3 hints from the SNB that ECB QE is going to be really big

Earlier in the day, Germany  confirmed its initial inflation numbers published earlier in the month. The focus in terms of indicators  now shifts to the US.

At 13:30 GMT we have US inflation numbers, and they are followed by industrial output figures at 14:15. At 14:55 we get consumer confidence.

See how to trade the US consumer confidence with EUR/USD.

Here is the euro/dollar chart showing recent ranges:

EURUSD trading ranges January 16 2015 after deflation numbers SNBomb

 

In our latest podcast we analyze the  SNBomb, do an ECB Preview, discuss US wages, dive into Saudi costs and the look at the Aussie

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