Inflation data stays in focus in the session ahead

The UK release will be the main one to watch, especially since an August rate cut by the BOE remains a near 50-50 call. Headline annual inflation is estimated to ease to 1.9% but core annual inflation is estimated to hold at 3.5%. Services inflation remains sticky and policymakers would like to see more progress on that. It is estimated to ease marginally to 5.6% from 5.7% in May.

As such, the pound will be a potential mover on the headlines later.

Besides that, there is the Eurozone final estimate for June but that shouldn’t be of much impact. The ECB is setting up for a move in September and aren’t going to pull any surprises tomorrow. In any case, this is the final estimate so the release tends to be a more muted one in general.

Given all that, we might be in for a slower on in Europe today. But if anything else, do keep an eye out on the risk mood. US futures are down slightly but could start to pick up again later in the day. Meanwhile, gold is holding at fresh record highs and with sights of $2,500 potentially next.

0600 GMT – UK June CPI figures0900 GMT – Eurozone June final CPI figures1100 GMT – US MBA mortgage applications w.e. 12 July

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.

🌍📅 On this day in 2014, World Emoji Day was created and celebrated based on the way the calendar emoji is shown on iPhones. 🥳🤪🙃😆

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