Eurozone inflation and UK GDP in focus today – TDS

Analysts at TDS suggest that Euro area flash HICP and third and final reading of UK’s 2016Q4 GDP will be the main economic releases for today’s session.

Key Quotes

“Reflecting the sharp downside surprise in yesterday’s German CPI we see downside risks to March euro area flash HICP. We expect inflation of 1.7% y/y vs consensus of 1.8%. French HICP is also out with consensus looking for a stable 1.4% y/y reading but downside risks exist there too.”

“UK: For the third and final reading for 2016Q4 GDP markets don’t expect a revision to the previous 0.7% q/q, although we see scope for an upside surprise should the positive revisions to industrial production and construction not be offset by downward revisions elsewhere.  For the Index of Services for Jan consensus looks for 0.2% m/m.  Note that the IoS does not cover the retail sector, which fell 0.5% m/m in January.”