German inflation the highlight of the agenda today

The selling in bonds is what stood out in trading yesterday. And that reverberated to stocks and also underpinned the dollar in US trading. The two Treasury auctions here and here played a part, but it’s definitely also a tricky one with month-end also in consideration.

In any case, the dollar is still staying in the game as the push and pull among major currencies continues since last week. Looking to European trading today, things are quieter with the risk mood looking fairly cautious. S&P 500 futures are now down near 0.4% and the more sluggish mood there could facilitate more of the same flows yesterday.

In terms of the economic calendar, the German CPI report is the highlight. The estimate is that we will see headline annual inflation tick a little higher in May to 2.4%. The April reading was 2.2%. Nonetheless, it will not change up the narrative for the ECB next week but these readings will matter more once the June decision is out of the way.

It’s still a toss up as to what the ECB might do after the summer, so the data is going to be the one leading the storyline.

0600 GMT – Germany June GfK consumer sentiment0645 GMT – France May consumer confidence0800 GMT – Eurozone April M3 money supply0800 GMT – Switzerland May UBS investor sentiment1100 GMT – US MBA mortgage applications w.e. 24 May1200 GMT – Germany May preliminary CPI figures

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

This article was written by Justin Low at www.forexlive.com.