The dollar maintains its stability again, after the slight gains it achieved yesterday. USD/JPY is vying for last week's high at 156.78 while EUR/USD is pulling back towards a test of its 100-day moving average at 1.0814. This comes after the Fed's meeting minutes were released overnight, which although more hawkish could be considered outdated following last week's US CPI report.
Looking at European trading today, the Purchasing Managers' Index (PMI) data will be the focus of the agenda. The Eurozone and UK economies showed modest improvement in the first quarter, which was also reflected in April for most of it. The rebound in economic activity at least gives the European Central Bank and the Bank of England some breathing room so that they do not cut interest rates sooner rather than later.
Estimates for May are expected to roughly match April readings, reaffirming at least a steadier economic picture. So, we'll see about that. This won't change much of the ECB's outlook but any setback in UK data could be troubling for the Bank of England, especially after yesterday's hotter UK CPI report.
0715 GMT – France may release composite PMI for services and manufacturing
0730 GMT – Composite PMI for Germany's manufacturing and services sector for May
0800 GMT – The Eurozone announced the composite PMI for the manufacturing and services sector for May
0830 GMT – May UK composite PMI for manufacturing and services
That's it for the next session. I wish you all the best in the coming days and good luck with your trading! Stay safe out there.