Like the UK, inflation in the US fell in January to record a fresh low for some time. Last month, inflation dropped to 1.6% from 1.9% the previous month and, although it was higher than the 1.5% the markets had been expecting, it is still the lowest reading since June 2017. Again, like the UK the reason behind the drop was a significant drop in the price of energy.
Trump said that it was possible the deadline for a trade deal between the US and China could be extended if it looks as if progress is being made, although he did counter that by saying he was inclined not to. Still, the markets will see it as a bone thrown and some light at the end of a very long, dark tunnel. Whether a deal can be agreed is still in the air though.
Today we will see initial jobless claims up to 9 February 2019, but the highlight from the US is retail sales for December. They are expected to hold steady at 0.2%.
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