Chinese trade balance data has missed widely as expectations for February were a net positive for the export section with a surplus of 173B Yuan. Rather than an increase, changes were a negative 60B. The release data showed disappointing results for the second largest economy with exports only 4.2% on a yearly basis versus the expected 14.6%. Imports have increased with 44.7% on a yearly basis when only 23.1% was the expected level for this report. Despite this, the net result is still a surplus of 293.7bn CNY for the economy on a yearly basis thus far.
Meanwhile the data for the Chinese CPI shows a slight growth of 0.8%, however, this is lower than the expected 1.9%. The previous month's value sat at 2.5%. The reasoning behind this could the the increase in factory products price and overall improved productivity. The GBP is expected to be at levels of 6.8%. Annual CPI inflation is projected at 2%.
The ECB will be deciding today if they want to change the Euro's interest rate. So far, expects are skeptical of such change. Projected inflation rate for this year is 1.3%, 1.5% for 2018 and 1.7% for 2019. These figures indicate that the Union can still maintain the current borrowing levels, however, some have voiced concerns that these policies have had a diminishing effect on the Eurozone economy and it's potential is being wasted ineffectively. Lack of consensus between Draghi's dovish policies and the German Deutschbank, who advocate a price hike, could ensure that numbers stay the same this time, but changes in the US dollar and inflation reports in the EU could force the hand of the ECB for reforms.
Yet another puzzle piece for the FED rate decision is expected to be revealed today. The Unemployment claims are due today and numbers are expected to be around 239K, above previous period's 223K. If the target is met, this could give a serious boost to the Greenback, together with yesterdays news of increase in ADP Non-Farm Employment, totaling 298k.