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US Core CPI Softens | Brexit Deal Faces Vote Before Parliament
Published March 12, 2019
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US core CPI prices rose by 0.11% in February with the year over year rate falling to 2.1%. The details of the report were mixed but was significantly softer on net. Shelter categories remained stable, giving the Federal Reserve more room to stick to its plan for a patient approach to raising interest rates.
Prime Minister May’s Brexit deal hopes have suffered another blow as UK Attorney General Geoffrey Cox confirmed to the House of Commons this morning that the Brexit negotiations haven’t substantially changed from the deal May put to a vote in January. The pound fell as markets anticipate less chance of the agreement getting through Parliament tonight.
USDCAD has modestly recovered with the loonie forcing the pair down towards 1.3375. This comes as a barrel of West Texas Intermediate is trading at $57.31 on reports of Saudi Arabia planning to intensify its output cuts before the April OPEC meeting.
Japanese Finance Minister Taro Aso has stated that tariffs were among some of the measures Japan could take against South Korea if the dispute between the major trading partners deteriorates over Koreans conscripted as labor during Japan’s colonial rule. These tariffs would include hits to 100 South Korean products and tightening visa issuances.