The European Central Bank hinted again yesterday that they are on course for further monetary easing as the Central Bank attempts to boost flagging growth and combat low inflation. According to yesterday’s ECB minutes, President Mario Draghi has won wide support for further policy action next month. The minutes showed that the council were unanimous in concluding that its current policy stance “needed to be reviewed and possibly reconsidered”. Further stimulus is now expected to be unveiled at their next meeting in March.
Across the pond, the US released two pieces of high tier data. The Philly Fed manufacturing, which acts as an early signal of future economic activity and changes in sentiment, posted in line with expectations at -2.8 still below which indicates worsening conditions in the US manufacturing hub of Philadelphia. US Jobless Claims was released simultaneously, the figure dropped more than expected to a reading of 262k, its best reading this year.
We end the week with the release of the UK Retail Sales where the monthly reading is expected to increase from -1.0% to 0.8%. The Monthly Inflation figure in the US is scheduled as well and forecast to post a -0.1% whilst Core inflation is expected to improve slightly.