In February, the United Kingdom’s Retail Price Index (RPI) recorded a month-on-month increase of 0.6%, falling short of the anticipated 0.8%.
The annual Consumer Price Index (CPI) inflation decreased to 2.8%, down from 3% in January, and below the expected 2.9%. This decline has impacted the Pound Sterling ahead of the upcoming UK Budget Report.
Eur Usd And Tariff Concerns
The EUR/USD pair is trading below 1.0800 due to increased demand for the US Dollar, amid concerns over tariff threats from the US administration.
Gold prices are rising, reaching $3,020 as Copper hits a record high amid optimistic trading conditions.
Shiba Inu (SHIB) has surged by 8% and is currently trading at $0.000015, marking a significant gain of over 15% for the week.
Market Sentiment And Key Economic Reports
Market sentiment will be shaped by reports on tariffs and fresh business and consumer surveys, with attention on the upcoming core PCE inflation data, the Federal Reserve’s preferred measure.
What we’re seeing here is a shift in expectations that traders will need to take into account when making decisions in the weeks ahead.
With the Retail Price Index in the UK rising by 0.6% instead of the anticipated 0.8%, pricing pressures appear softer than predicted. This indicates that price increases are moderating at a slightly faster pace than previously thought. At the same time, the Consumer Price Index inflation rate falling to 2.8% in February—lower than both January’s 3% and the expected 2.9%—adds weight to the idea that inflation is cooling more quickly. This is especially relevant as the UK Budget Report approaches, with potential implications for fiscal policy and currency movements. Given these figures, there will likely be growing discussions about future interest rate decisions, and the way Sterling reacts in the coming days could provide further insight.
Across the Atlantic, the Euro is trading below 1.0800 against the US Dollar, with traders displaying a preference for the latter. Concerns about potential tariffs from the US government are keeping demand for the greenback elevated, leading to downward pressure on the common currency. This also suggests that any updates regarding trade policies could continue to shape how this pair moves, making upcoming political and economic announcements especially relevant.
Meanwhile, commodities are seeing notable activity. Gold has climbed to $3,020, while Copper has reached new highs, suggesting an optimistic outlook for metals. These moves indicate strong demand, and traders in these markets will be closely watching for further signs of momentum.
In the cryptocurrency space, Shiba Inu has gained 8%, bringing its weekly rise to over 15%. This recent strength reflects an increase in speculative interest, and with the current trend, volatility in digital assets should be expected going forward.
Looking ahead, markets will focus on the latest reports concerning tariffs, as well as new business and consumer confidence surveys. On top of that, the upcoming core PCE inflation data will play a key role, given that it remains the Federal Reserve’s preferred inflation metric. How markets interpret this data will determine the direction of major assets in the short term.
