The major currencies look somewhat calm, and that is understandable. Today will be a placeholder trading day due to it being a holiday in the US. This makes the week a bit strange, as we have a break in the middle.
The dollar remains more mixed overall during the week, while risk sentiment remains more optimistic, at least on Wall Street. Technology stocks continue to push stocks higher but we will catch a break today.
Looking at European trading, UK inflation is the main item on the agenda. We will get the numbers for May and it is estimated that the headline annual inflation rate is expected to fall to the 2.0% level. But it is too late to convince the Bank of England to act tomorrow at least, especially after April's hottest numbers here.
UK CPI YoY (%)
Core annual inflation and services inflation remain major sticking points that go against the argument for faster interest rate cuts by the Bank of England. As things stand, traders see interest rate cuts of around 47 basis points for this year with odds of a move in September at around 91%. The August move is currently priced at only 44%.
However, it will be the British pound to watch at least next session with the focus on inflation data.
0600 GMT – UK CPI numbers for May
0800 GMT – Eurozone current account balance for April
1100 GMT – Applications for US Mortgage MBA on June 14
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.