Tuesday brought UK CPI and PPI figures. The Consumer Prices Index (CPI) was unchanged in the year to February 2015, that is, a 12-month rate of 0.0%, down from 0.3% in January. Analysts were forecasting 0.1% increase. The main contributions to the slowdown in the rate came from price movements for a range of recreational goods (particularly data processing equipment, books and games, toys & hobbies), food and furniture & furnishings. There were no large upward effects to offset the change.

PPI Input prices rose 0.2% between January and February 2015, compared with a fall of 0.4% between December 2014 and January 2015, missing forecasts on 1.6% increase. Core factory gate prices, which exclude the more volatile food, beverage, tobacco and petroleum products, rose 0.2% in the year to February 2015, compared with a rise of 0.3% in the year to January 2015.

Only BBA Mortgage Approvals data was released from the UK on Wednesday. BBA Mortgage Approvals increased to 37,300, beating forecasts on rise to 36,900. Richard Woolhouse, Chief Economist at the BBA, said:“The increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We’re seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available."

European part of Thursday's session was marked by U.K Retail Sales figures. U.K Retail Sales increased by 0.7% compared with January 2015, beating predictions on 0.3% rise. All store types showed growth. Average store prices fell for the eighth consecutive month, falling by 3.6% in February 2015 compared with February 2014. This is the largest year-on-year fall since consistent records began in 1997. Once again the largest contribution to the year-on-year fall came from petrol stations, which fell by 15.5%, the largest year-on-year fall in this store type on record.

Also, CBI Realized Sales survey was released. Latest CBI survey on Realized Sales showed that 34% of respondents said volumes were up on a year ago, and 15% said they were down, giving a rounded balance of +18%. This was above forecasts on balance of +16%. Rain Newton-Smith, CBI Director for Economics, said: “Sales have recovered following a tough month in February for retailers, and we expect solid growth to continue through Easter."

This week markets will be looking at:

Net Lending to Individuals (Monday 9:30)

Current Account (Tuesday 9:30)

Final GDP (Tuesday 9:30)

Manufacturing PMI (Wednesday 9:30)

Construction PMI (Thursday 9:30)