In the US session, Retail Sales and PPI figures were released. Sales at U.S. retailers unexpectedly fell in March, raising concern consumer spending is losing momentum. The 0.3% drop in purchases followed little change the prior month, Commerce Department figures showed Wednesday in Washington. The median forecast of 81 economists surveyed by Bloomberg called for a 0.1% gain. The decrease was led by the biggest drop in demand for autos in a year, and cutbacks at clothing stores, internet merchants and restaurants.
The Producer Price Index for final demand fell 0.1% in March, seasonally adjusted, missing forecasts on 0.1% rise, the U.S. Bureau of Labor Statistics reported. Final demand prices decreased 0.2% in February and advanced 0.1% in January. On an unadjusted basis, the final demand index moved down 0.1% for the 12 months ended in March. The decrease in the final demand index in March can be traced to prices for final demand services, which declined 0.2%. In contrast, prices for final demand goods rose 0.2%.
Tomorrow's session will bring BoE interest rate decision and the following Minutes. No change in interest rate is expected but following Minutes should bring a lot of volatility to the markets. In the US session Unemployment Claims and CPI data will be released. CPI should go incline by 0.2%, while Unemployment Claims should edge up to 270,000.
Figures to watch:
Official Bank Rate/BoE Meeting Minutes (Thursday 13:00)
CPI (Thursday 14:30)
Unemployment Claims (Thursday 14:30)
