FxWirePro: 13th February Key updates

Here are some key updates that as a trader you need to keep a tab on.

• RBNZ: Dovish commentaries were expected. Instead, RBNZ announced that the central bank intends to keep the rates at the current level of 175 bps for the next two years. Hence, Kiwi jumped sharply and currently the best performer of the day, trading at 0.681 against the USD (+1.1 percent).
• U.S. Govt. shut down: According to Republican lawmaker Richard Shelby and Democratic lawmaker Nita Lowey, U.S. lawmakers have reached an agreement in principle to avert U.S. government shutdown. The last shutdown, which was the longest in U.S. history ended on January 25th, with President Trump signing the 3-week stopgap bill. The latest report suggests that President Trump intends to sign the compromised bill to avoid another round of shut down.
• BoJ’s Kuroda: Speaking at a parliamentary hearing BoJ chief Haruhiko Kuroda reiterated his commitment to the central bank’s easing policy. He suggested that he still believes that inflation is gradually moving towards 2 percent target.
• Italy’s gold: After Deputy Prime Minister Matteo Salvini floated the idea of confiscating Italy’s gold reserve from central bank’s control, his party’s lawmaker Claudio Borghi assured that the government doesn’t intend to sell its gold reserve.
• Brexit: UK’s opposition Labour party indicated their readiness to back the ‘Cooper amendment’, would allow parliament to pass a bill requiring May to seek an extension to Article 50 if there is no deal that MPs can agree on over the next two weeks. The amendment basically prevents a no deal Brexit.  Voting on the amendment is expected on 27th February. Speaking at parliament Prime Minister Theresa May reiterated that her government intends to leave the EU on 29th March deadline.
• Sino-American trade war: White House confirmed that the final Sino-American trade agreement would depend on the outcome of the meeting between president Trump and President Xi, set to take place after March.

UK inflation was slightly weaker than expected,

• UK January CPI -0.8 percent vs -0.7 percent m/m expected. Prior +0.2 percent.
• CPI +1.8 percent vs +1.9 percent y/y expected. Prior +2.1 percent.
• Core CPI +1.9 percent vs +1.9 percent y/y expected. Prior +1.9 percent.
   
• PPI output 0.0 percent vs 0.0 percent m/m expected.
• PPI output +2.1 percent vs +2.2 percent y/y expected.
• PPI input -0.1 percent vs +0.2 percent m/m expected.
• PPI input +2.9 percent vs +3.8 percent y/y expected.

• RPI -0.9 percent vs -0.8 percent m/m expected.
• RPI +2.5 percent vs +2.6 percent y/y expected.

US inflation was slightly higher than expected,

• US January CPI +1.6 percent vs +1.5 percent y/y expected. Prior +1.9 percent.
• Core CPI +2.2 percent vs +2.1 percent expected. Prior +2.2 percent.