The Greenback received further disappointment yesterday, as the Weekly Unemployment Claims rose by 7k to 230k. The Empire State Manufacturing Index fell to 13.1 from the 17.7 originally expected. The US monthly PPI figure posted as expected at 0.4 %, providing the Fed with further support for a March rate hike.
UK Prime Minister, Theresa May will be holding talks with German Chancellor, Angela Merkel in Berlin today, in an attempt to make further progress with the Brexit negotiations. Merkel is hoping May will provide her with a clear proposal as to the future relationship between the UK and the bloc. This comes as Merkel mocked May’s approach to negotiations at Davos last month, as May is unable to provide the EU with a clear answer as to what type of relationship she is after. After the meeting has taken place, May will travel to Munich for the Munich Security Conference, where she will give the next talk in ‘the road to Brexit’ series tomorrow, before other world leaders, foreign ministers and defence representatives.
UK Retail Sales posted worse than expected for January at 0.1%, as a decline was seen across all main sectors, except the non-food stores which saw an increase of 10.9%. Fitness based New Year’s resolutions were cited as one of the reasons for the increase in sales in this sector. Despite the bearish release, the Pound stayed relatively stable.
Across the pond, the US will be releasing the Building Permits figure for January, which is expected to remain stable and post 1.29m. The Building Permit figure provides a gauge as to the future construction activity within the US. The University of Michigan will be releasing the Consumer Sentiment and Inflation Expectations reports. The sentiment is expected to post 95.6, remaining static from the previous month’s revised figure.