UK inflation below expectations, US manufacturing PMI on firm footing – Deutsche Bank

By FXStreet Research Team at Deutsche Bank, suggests that yesterday in the UK, the main focus was on the February inflation reports.

Key Quotes

“At the headline level the 0.2% mom increase in the CPI in February was a little below expectations, leaving annual inflation at 0.3% yoy. The core CPI was steady at 1.2% yoy, which was in line with market expectations. At the PPI level the 0.2% mom lift in core output prices in February was slightly firmer than expected, and lifted the annual inflation to 0.2% yoy. Meanwhile the ONS house price index rose 7.9% yoy in January (up from 6.7% yoy a month earlier).

In the US the Markit manufacturing PMI edged up 0.1pts to 51.4 in March, thus continuing to paint a slightly firmer reading than the manufacturing ISM. That said, judging by this month’s regional surveys, the manufacturing ISM should post a handy increase in March. The latest survey to point this way is the Richmond Fed’s, with the headline manufacturing index jumping 26pts to +22 – the best reading since April 201. The shipments index surged 38pts to +27 and the new orders index jumped 30pts to +24. Whilst the survey is noisy, these are very …read more

Source:: FX Street