ForexLive European FX news wrap: Dollar tepid ahead of US CPI report

Headlines:

• US inflation to hog the spotlight in trading today
• What is the distribution of forecasts for the US CPI?
• The CPI importance is fading
• Dollar a touch softer awaiting the US CPI report later
• UK May monthly GDP +0.4% vs +0.2% m/m expected
• Germany June final CPI +2.2% vs +2.2% y/y prelim
• IEA sees oil demand growth slowing as China consumption eases
• German manufacturers still taking a more pessimistic view for the remainder of the year

Markets:

• EUR and GBP lead, CAD lags on the day
• European equities higher; S&P 500 futures down 0.1%
• US 10-year yields up 0.4 bps to 4.284%
• Gold up 0.4% to $2,381.19
• WTI crude up 0.4% to $82.44
• Bitcoin up 1.9% to $58,477

It was a mostly sideways session and very much expected in the build up to the US CPI report today.

The dollar is marginally softer but all bets are off until we get to the inflation numbers later. There wasn’t much in the moves as it is just a light extension of the narrow ranges earlier.

The euro and pound are up by 0.2% against the dollar at 1.0850 and 1.2870 respectively. But both are holding only within a 25 pips and 30 pips range respectively on the day.

USD/JPY is also just lightly changed, down 0.1% to 161.55 in a rather mundane session.

In terms of data, UK monthly GDP was a beat but nothing that is really too market moving on the day.

US futures remain more tepid while bond yields are also keeping more tentative. This as all eyes are on the main event coming up later.

Hopefully, it’ll kick start some action in what has otherwise been quite a dreadful week in terms of currency moves.

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