A quieter week ahead on the macroeconomic front will leave investors looking across the pond to the US and the Federal Reserve’s preferred measure of inflation.
Nationwide house price data should offer UK traders something to mull over though, alongside car production and further retail sales figures.
Ahead of April’s looming stamp duty hike, expectations are for house price figures on Friday to show a 0.6% or 3.9% increase on an annual basis in February.
CBI distributive trade and SMMT data sets earlier in the week are also anticipated to show ongoing declines among both UK retail sales and car output respectively.
Over the Atlantic, personal expenditures and the all-important core measure later on Friday promise to dominate proceedings.
Given tariffs under President Donald Trump have prompted renewed inflationary pressure and clouded the scope for rate cuts ahead, the Fed has flagged caution most recently.
“Fed officials this week have expressed a keen interest in seeing more progress on inflation before considering further rate cuts while also recognising potential risks from changes in trade policy,” IG analysts noted.
“They will likely see that next week,” IG added, with headline PCE for January seen easing to 2.5% year on year and the core rate subsiding to 2.6% in the meantime from 2.8%.
Next week is also set to bring a second estimate for fourth-quarter US gross domestic product growth, alongside the likes of European inflation figures.