Investor sentiment has been shaken further by the escalating conflict across the Middle East, which has now entered its seventh day.

Tuesday was not full stacked with economic data, it did not stop markets from being active. We can see continuing strength from safe haven currencies, particularly the USD.

Preliminary inflation rate will be released from the European Union today. Forecasting is that core inflation will be unchanged at 2.2% from its previous month.

Throughout this mornings' session, we have preliminary inflation readings from a few different EU countries. Even if it's not the final data release, this tends to give us an indication of in which direction pricing levels are moving for a nation.

Markets remain focused on global policy developments this morning, with political and central bank headlines continuing to drive currency movements.

Tensions continue to grow for GBP, struggling to hold its levels against EUR and USD. Recent USD strength is coming from selloffs in stock markets from tariffs threats and once again proving that USD is a preferable choice of holdings while uncertainty is brewing.

UK retail sales surged in January, seeing an uplift of 1.8% month-on-month. The initial forecast was telling us a different story, with expectations of a decline down to 0.2% from December’s low of 0.4%.

Last night's Federal Reserve meeting minutes from January showed policy members were still divided on the path for future interest rate decisions.