Markets seem to have recovered some losses from last week as investors await inflation data

key points this week.

• UK unemployment data Tuesday
• US inflation figures Wednesday
• ECB central interest rate decision Thursday

This week poses three major events for investors across the world. UK unemployment data is due on Tuesday with a consensus of 4.3%, showing a 0.1% rise in unemployment in the UK. While this is somewhat negative, it would make a suggestion to the BOE that inflation is under control as less sending would suggest lower prices in the medium term as more people become unemployed. GDP is also due Wednesday with other economic data releases such as Trade balancing and industrial & manufacturing production figures.

US inflation figures are also due Wednesday with YoY core CPI expected at 4.3% from 4.7% previously. A further decline in inflation could have a postive effect on markets as investors may believe that the rate hike cycle is coming to an end shortly.

The ECB are also holding a press conference to determine thier central bank rate. Analysts are forecasting no rate hike with rates staying at thier current level of 4.25%/3.75%. Similar to the above, if central bankers do hold rates it could have a positive effect on markets.