A nice busy week in terms of economic data, although today is quiet.
We have the CPI figures due for the EU, followed by the US Housing Index later in the day.
Focus then shifts to Wednesdays UK Inflation figures ahead of the much-anticipated Bank of England policy announcement.
Inflation figures are expected to fall from 4 percent to 3.6 percent.
Last week’s US Inflation figures surprised markets edging upwards rather than the expected decline markets had been holding out for. On the back of this, markets have pushed back expectations of an interest rate cut.
On Wednesday evening we have the US Fed policy announcement. Markets will await to see if a cut does take place and the comments that follow thereafter.
Following a raft of mixed data for the UK over the past few weeks, on Thursday we have the Bank of England policy announcement where it is widely expected that interest rate will remain as they are at 5.25 percent. Following the announcement, the MPC will deliver its vote and the comments thereafter should attract interest.
Later in the day on Thursday, for the US we have the employment, PMI, and existing home sales numbers.
To cap off a busy week, UK retail sales on Friday will be closely watched following mixed data over the past few months. February’s release showed a 3.4 percent increase in January, following Decembers (Jan reading) large slump.
A positive retail sales reading could prove a winner & show the economy is picking up. On the back of a strong number, we could see some GBP strength.