US GDP Surprises – Rises 1.0% in Q4

Flash inflation data released from Germany showed inflation rising 0.40%, below the forecasts of 0.50% for the month of February but better than the previous month's -0.80% decline. On a year over year basis, Germany's inflation was flat at 0.0%. Concurrent French inflation data showed an increase of 0.20%, below the estimates of 0.40%, while on a year over year basis, the French CPI declined by -0.20%. The Euro remained subdued on the data and started to decline in early trading on Friday with losses especially against the British Pound. Following the strong US GDP release recently, EURUSD fell below the $1.10 handle to trade near $1.095. Against the British Pound, the Euro was down for the second day.

WTI crude oil futures were down -0.61% on Friday after prices touched a one-month high at $34.66, before settling at $32.85 by the close. Oil prices have remained volatile over the past few weeks as OPEC members continue to form a consensus to scale back production to stabilize prices. Earlier in February, prices fell to fresh multi-year lows at $26.5 but reversed their losses as Saudi Arabia and Russia agreed to freeze output at January levels. While posting a steady rally, WTI ignored the weekly build-up in inventories. The gains in Friday's rally came about as newswires reported pipeline disruptions in Iraq and Nigeria, stopping nearly 800,000 barrels of crude from reaching the markets. The S&P 500, which has been closely tracking oil's price swings also rallied to 1,965 before easing back and closing at 1,945 on Friday.