Ella 
EUR/USD has remained choppy for most of Tuesday, with EUR/USD trading above 1.0900. The final value of German inflation was fully in line with expectations, while the U.S. Consumer Price Index (CPI) inflation data was mixed. Investors shrugged off concerns about inflation and continued to bet on the prospect of the Federal Reserve cutting interest rates.
U.S. headline inflation rose to 0.4% in February from 0.3% in the previous month, and the annual rate of inflation rose to 3.2%, compared with forecasts of 3.1%. Core inflation fell back, but less than expected, with the monthly core inflation rate remaining at 0.4% instead of the forecast 0.3%. Core inflation fell to an annual rate of 3.8% from 3.9% previously, but was below expectations of 3.7%.
The European Union’s industrial production monthly rate in January is expected to be -1.5%, released on Wednesday, down from 2.6% in the previous month. No U.S. economic data is released on Wednesday, followed by the U.S. Producer Price Index (PPI) on Thursday. The U.S. core producer price index is expected to edge down slightly to an annual rate of 1.9% from 2.0% last month.
U.S. retail sales for February are also expected to be released on Thursday, and are expected to rebound to 0.8% after recording -0.8% in the previous month. U.S. initial jobless claims are also expected to rise slightly from 217,000 to 218,000 in the week ending March 8.
