In the Eurozone, some of the main economies’ flash HICP inflation fell in February. Germany, France, and Spain all saw headline rates fall to 2.7%, 3.1%, and 2.8%, respectively. The data was largely consistent with the forecast.
Turning to the day ahead, A packed Eurozone data schedule will provide some final insights into economic circumstances before next week’s European Central Bank monetary policy statement.
February CPI Eurozone inflation data is expected to show a further decline in annual headline inflation to 2.6% from 2.8% in January (the second lowest since July 2021). This is likely to be mostly owing to a drop in core inflation to a two-year low of 2.9% from 3.3%, with some assistance from decreased food prices.
The US ISM manufacturing index for February is new data. Other US manufacturing indicators in February were stronger than predicted, and we expect the ISM measure to exceed 50 for the first time since late 2022.
Today is a busy day for US Federal Reserve speakers, but markets are actually waiting for next week’s announcement from Fed Chair Powell.