Core Consumer Price Index data will come from the States tomorrow, along with Retail Sales.
Consumer Price Index data released from the U.K shortly ago came in slightly higher than expected with a gain of 3.0%. This may continue to fuel hawkish rhetoric from certain Bank of England members such as Ian McCafferty who suggested interest rates in Britain will rise faster than most expect. It has been a relatively quiet week and a half of economic data from the United States, but that will begin to change tomorrow when Core CPI and Retail Sales figures are published. Global investors are focused on inflation data coming from the States as they try to gauge the timing for future interest rate hikes from the Fed. While many investors are already counting on a March increase, the question is when the next hike will follow. A strong inflation result tomorrow, could be an indicator for more action from the Federal Reserve as early as June or July. The broad markets will be affected by the results.