The UK release will be the key release to watch, especially as a BoE rate cut in August remains a close possibility. Headline annual inflation is forecast to ease to 1.9%, but core annual inflation is expected to hold steady at 3.5%. Services inflation is holding steady and policymakers will want to see more progress on this front. It is expected to ease slightly to 5.6% from 5.7% in May.
Accordingly, the British pound is likely to be the main driver of headlines later on.
In addition, there is the final Eurozone estimate for June, but this should not have much impact. The ECB is set to make a move in September and will not offer any surprises tomorrow. In any case, this is the final estimate, so the release tends to be more subdued overall.
Given all this, we may see a slowdown in Europe today. But if anything, keep an eye on the risk sentiment. US futures are down a bit but could start to recover again later today. Meanwhile, gold is consolidating at new highs with a potential move to $2,500.
0600 GMT – UK CPI figures for June
0900 GMT – Eurozone final CPI figures for June
1100 GMT – US MBA Mortgage Applications July 12
That’s all for the upcoming session. I wish you all a great day ahead and good luck with your trading! Stay safe out there.
🌍📅 On this day in 2014, World Emoji Day was created and celebrated based on the way calendar emojis are displayed on iPhones. 🥳🤪🙃😆