British News Agency

Headline inflation is expected to decline from 2.7% to 2.5%, while core inflation is projected to ease from 2.6% to 2.5%.

Earlier this week, strong U.S. nonfarm payroll data highlighted the resilience of the labor market, while the latest weekly jobless claims came in above forecasts.

Markets currently expect the Fed to keep interest rates unchanged in March and deliver two 25-basis-point rate cuts later in the year, in June and September.

Throughout the week, the dollar is set to fall more than 2% against the yen following Japanese Prime Minister Sanae Takaichi’s decisive election victory and new verbal interventions from Tokyo. The Australian dollar also posted strong gains on hawkish signals from the Reserve Bank of Australia.