UK inflation figure to guide BOE
- AUD - RBA Assist Gov Kent Speaks
- JPY - Prelim GDP q/q: 1.0%
- CNY - Industrial Production y.y: 6.4%
Last week saw tensions run high between the US and North Korea following North Koreas testing of a ballistic missile. However, tension eased yesterday, as US Officials reassured that the threat of war is minimal.
South Korea president Moon Jae-in has said “there must be no more war on the Korean peninsula, whatever ups and downs we face, the North Korean nuclear situation must be resolved peacefully”. President Moon has advocated for a peaceful resolution to the tensions to prevent any unnecessary military action and irreversible damage which could be caused to the region.
Chancellor of the Exchequer, Phillip Hammond, and Trade Secretary, Liam Fox, have been butting heads of late over the UK’s exit from the EU. However, over the weekend the two published a joint statement in which they outlined a common position on a post-Brexit transitional deal. The united front has eased concerns over a rocky negotiation process between the UK and EU.
- AUD - Monetary Policy Meeting Minutes
- GBP - CPI y/y
- USD - Core Retail Sales m/m
The UK will release their CPI figure today, expected to post 2.7%. Inflation is currently above the BOE’s target of 2% at 2.6%. However, the drop in inflation last month reduced the pressure on the BOE to raise interest rates. Today’s figure will give the markets clues as to whether the BOE needs to act to bring inflation back down towards the target. In the afternoon, the US will release the Retail Sales Figure.