The US CPI posted as expected yesterday at 2.2% year on year, whilst the Core CPI also posted as expected at 1.8% year on year. Despite posting as expected, the reading disappointed markets as the month on month figure showed signs of slowing by posting 0.2%, compared to the previous bullish reading of 0.5% for January. Consequently, the Dollar weakened as the markets began to believe the chances of four rate hikes this year is unlikely.
UK Prime Minister, Theresa May announced today in Parliament, that 23 Russian diplomats will be expelled from the UK. The announcement came after a Russian-made nerve agent was used on a former double agent and his daughter over a week ago. Despite the nerve agent being linked to being made in Russia, Moscow has denied any involvement and refused to explain how or why the nerve agent was used, which led May to take this action in Parliament today.
Across the pond, the Core Retail and PPI figures are set to be released. Core Retail Sales are expected to bounce up to 0.4%, after posting a disappointing 0.1% last month. The Producer Price Index is expected to drop down, from 0.4% to 0.1% for February.