News Oil 

Cost of imported goods fall for third straight month, offering more evidence of waning inflation

“The drop in imported oil prices and other foreign goods is also lending a helping hand” writes Jeffry Bartash for marketwatch.com. What happened: The cost of imported fuel decreased 3.2% in January and it’s fallen 22.5% in the past three months.Lower oil prices once again played a big role in the declining cost of imports, but the price of a variety of consumer and industrial goods also fell. Source: marketwatch.com

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News Regulators 

USD: US CPI: Nothing In It To Sway The Fed From Doing ‘Nothing’ For Now – CIBC

“Core price were up 0.2%, on expectations, with the 12 month rate holding at 2.2% (a tick above consensus)” writes Yohay’s Google Profile for forexcrunch.com. Nothing in this to sway the Fed from doing what its doing now, which is nothing at all on rates until the economy provides more evidence on how its holding up in 2019,” CIBC adds.Here is their view, courtesy of eFXdata: “By the magic of seasonal adjustment and methodology revisions, US CPI managed to be both a bit hotter and a bit cooler than expectations…

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News 

Jobless claims climb again in February; chink in labor market’s armor?

“Weekly jobless claims, meanwhile, rose by 4,000 to a seasonally adjusted 239,000 in the seven days ended Feb. 9, the government said Thursday” writes Jeffry Bartash for marketwatch.com. The four-week average of new jobless claims climbed by 6,750 last week to 231,750, marking the highest level since the January 2018, the government said Thursday.The numbers: The number of people who applied for jobless benefits over the last month rose to a one-year high, a possible sign the U.S. labor market might be losing some steam. Source: marketwatch.com

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News 

Inflation flatlines in January thanks to lower gas prices, CPI shows

“Another closely watched measure of inflation that strips out food and energy rose 0.2% last month” writes Jeffry Bartash for marketwatch.com. The numbers: The cost of consumer goods and services were unchanged in January largely thanks to falling gas prices, another sign inflation poses little threat to the economy right now.Real or inflation-adjusted wages rose 0.2% in January to bring the yearly increase to 1.7%.What’s more, the increase in the cost of living over the past 12 months slowed to 1.6% from 1.9%. Source: marketwatch.com

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Futures News Stocks 

Stock futures gain on trade optimism; inflation data eyed

“ET is expected to show that the consumer price index rose 0.1 percent in January after recording a drop of 0.1 percent in December” reports businessinsider.com. The fourth-quarter earnings season is in the last leg, and about 71 percent of S&P 500 companies that have reported have beaten consensus estimates.Traders work on the floor of the NYSE in New York Thomson Reuters By Amy Caren Daniel (Reuters) – U.S. stock index futures rose on Wednesday, driven by optimism over the ongoing U.S.-China trade talks, and as investors awaited the latest…

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Markets News Regulators 

Public confidence in inflation policy key to containing prices: paper

“Giving people a reason to doubt the central bank’s commitment to maintaining inflation near target is clearly costly.”” reports businessinsider.com. (Reuters) – Keeping the public confident inflation will be contained is key to keeping price rises contained, San Francisco Federal Reserve economists said in a paper on Monday that also suggested the unemployment level is all but irrelevant to the inflation trajectory.The research from the San Francisco Fed, which is viewed as a leader in labor market research, could play importantly into the central bank’s thinking on interest rates.But when…

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News 

Central banks are buying the most gold since the end of the Second World War — here’s why

“Central banks have been buying up gold at a rate not seen since the Second World War as concerns about geopolitics and the strong dollar see a shift in appreciation for the quintessential risk-free asset” writes Callum Burroughs for businessinsider.com. Bernstein also point out that beyond the conversation about central bank’s holdings of gold is its increase in use over jewellery. Both private and public “monetary” holding of gold have overtaken jewellery demand as the primary source of demand growth for gold in recent years, according to Bernstein.As well as…

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News 

Annual average inflation rate rises to 12.2% by end-January

“According to CBE, the target was hit in May 2018 when headline annual inflation recorded an average of 15.1% in Q4 of the year” writes Hossam Mounir for dailynewsegypt.com. According to the CAPMAS, this increase in the monthly inflation rate during January 2019 was driven by higher prices of vegetables by 3.9%, and grain and bread prices by 1.8%.Furthermore, the IMF stated in its report that the recent rises in inflation were caused by temporary increases in food and energy prices, but tightening the monetary policy helped to lower prices…

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News 

Print money to pay for it?

“But in a Thursday NPR interview, Ocasio-Cortez also declared we also have to “break the mistaken idea that taxes pay for 100 percent of government expenditure.”” reports theweek.com. The theory says that because governments can literally print money, “they can spend as much as they like,” Politico explains. Source: theweek.com

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GBP News 

British pound slips as Bank of England leaves rates unchanged, cites global growth and Brexit uncertainties in policy update

“The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”” writes Markets Reporter for marketwatch.com. The British pound GBPUSD, +0.3248% dropped on Thursday following the Bank of England’s first monetary policy update and inflation report of the year, in which it left interest rates unchanged, in line with market expectations.The central bank said that a continued, gradual tightening of monetary policy was necessary given its forecast for inflation, but warned of various factors weighing on the U.K. economy.”UK economic growth…

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