UK inflation in focus today

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UK inflation in focus today

<p style="" class="text-align-justify">Markets are heeding caution after the US CPI data release yesterday but not without drama as we saw plenty of twisting and turning in US trading yesterday. It wasn't a straightforward report for market players to digest and I shared some thoughts on why that is the case <a href="https://www.forexlive.com/news/unsure-of-what-to-make-of-the-us-cpi-data-yesterday-20230215/" target="_blank" rel="follow">here</a>. Classic market reaction, eh?</p><p style="" class="text-align-justify">For now, equities are slightly lower with S&P 500 futures seen down 0.4%. Meanwhile, the dollar is holding slightly higher going into European trading as traders look to sort out their feet and contest the technical levels outlined <a href="https://www.forexlive.com/news/what-are-the-key-levels-to-watch-for-dollar-pairs-ahead-of-the-us-cpi-data-today-20230214/" target="_blank" rel="follow">here</a> yesterday. As things stand, almost all the key technical levels pointed out are still very much in play so essentially yesterday's main event didn't change anything.</p><p style="" class="text-align-justify">Looking ahead, we'll get more key data releases today starting with UK CPI for January. The headline annual inflation figure is estimated to keep above 10% and that will continue to heap pressure on the BOE to keep tightening policy for now, with the core annual inflation reading estimated to ease slightly from 6.3% in December to 6.2% last month.</p><p style="" class="text-align-justify">All that before the next round of drama that will stem from the US retail sales report at 1330 GMT.</p><p style="" class="text-align-justify">0700 GMT - UK January CPI figures0800 GMT - Spain January final CPI figures1000 GMT - Eurozone December trade balance data1000 GMT - Eurozone December industrial production1200 GMT - US MBA mortgage applications w.e. 10 February</p><p style="" class="text-align-justify">That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.</p>

                This article was written by Justin Low at www.forexlive.com.

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