The U.S. dollar attempted to hold the gains but closely slightly bullish. Economic data showed that inflation from the Eurozone confirmed at 1.4% on the year in January. The final core inflation rate met 1.1% as per the preliminary flash estimates.
On Friday, officials in Washington said that they were extending the trade negotiations with China. The news raised speculation that the two countries might be close to nearing a trade agreement. President Trump said that a deal with China was more likely than not.
The U.S. set a 90-day deadline for trade talks with China. In case it fails it would automatically raise the tariffs on Chinese goods. The number we talk about are tariffs from 10% to 25% spanning across $200 bn worth of products. Over the weekend, President Trump announced that he was extending the deadline citing that the talks with China were progressing.
Mixed data from all over the world
The NY trading session showed Canada’s retail sales falling 0.1% on the month which was worse than the forecasts of a flat reading. Core retail sales fell 0.5%, matching estimates. The declines came on account of lower gas prices. On a year over year basis, Canada’s retail sales rose by 1.7% in 2018, compared to 2.7% in the year before.
Some Fed members will speak later during the day, including the ECB president Mario Draghi.
New Zealand’s retail sales report showed better than expected figures. Headline retail sales increased by 1.7% in the quarter, beating estimates of a 0.5% increase while the third quarter retail sales were revised higher to show a 0.3% increase.
Core retail sales gained 2.0%, beating estimates of 0.8% and up from a third quarter’s revised 0.7% print.
Bank of England’s Mark Carney will speak during the European trading session. The economic data for the day is quiet with the final wholesale inventories due during the U.S. tradings session. Final wholesale inventories should increase by 0.3% on the month marking the same pace of change as the month before.
The FOMC member, Richard Clarida is due to speak later in the evening.
