USD
Wholesale prices in the U.S. unexpectedly declined in February for a fourth
consecutive month, reflecting cheaper food and a slump in profit margins among
wholesalers and retailers. The 0.5 percent decrease in the producer price index
followed a 0.8 percent drop the prior month. Inflation in the U.S. has
decelerated as a rising dollar cheapened the cost of imports and crude oil
slumped. Federal Reserve policymakers are awaiting signs that inflation will

USD
Wholesale prices in the U.S. unexpectedly declined in February for a fourth
consecutive month, reflecting cheaper food and a slump in profit margins among
wholesalers and retailers. The 0.5 percent decrease in the producer price index
followed a 0.8 percent drop the prior month. Inflation in the U.S. has
decelerated as a rising dollar cheapened the cost of imports and crude oil
slumped. Federal Reserve policymakers are awaiting signs that inflation will
move back up toward their target as they consider raising interest rates for
the first time since 2006. 

Compared with a year before, producer prices fell 0.6 percent, the first
12-month decrease since records began in 2009. The core index increased 1
percent in the 12 months ended February, after a 1.6 percent gain. 

Consumer confidence declined in March to a four-month low as optimism about the
U.S. economy was tempered by weaker income expectations and a rebound in
gasoline prices. The University of Michigan said Friday its preliminary
consumer sentiment index decreased to 91.2 this month from 95.4 in February.
 Consumers were less upbeat this month as cold weather boosted utility
bills, the cost of gas climbed from the almost six-year low in January and wage
growth was limited among middle- and lower-income households. At the same time,
a better job market is among reasons Americans may feel comfortable sustaining
a steady pace of spending. 

US household budgets were strained this month by higher home-heating bills. The
eastern U.S. saw below-normal temperatures from Atlanta to New York and record
snowfalls in New England. The National Oceanic and Atmospheric Administration’s
data showed February was the snowiest month on record for Boston, while
record-low temperatures for any February were recorded in Chicago, Buffalo and
Cleveland. 

GBP
British construction output unexpectedly fell in January at the sharpest
monthly rate since late 2013, dragged down by a worsening decline in
housebuilding. Construction output shrank by 2.6 percent in January after
rising by 0.6 percent in December, the Office for National Statistics
said. Total new housebuilding dropped by 5.0 percent on the month, the
steepest fall since February last year. While most signs points to a
strong start to the year for Britain’s economy, construction output has
disappointed.

Key
Announcements:
USD –13:15: US Industrial Production (Feb) expected to remain
unchanged at 0.2% 
EUR –18:45: ECB President Mario Draghi makes a speech

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