UK inflation in the spotlight in the session ahead

Major currencies are lightly changed for the most part, with only the New Zealand dollar on the move so far today. That owes to a more dovish RBNZ as they become the sixth central bank among the G10 to cut interest rates in the latest cycle. The Fed looks primed to be the seventh of course. And the US CPI report later today should reaffirm that regardless.

But before we get to the main event in markets this week, there will be some items on the agenda in Europe. The standout will be the UK CPI report. From earlier this week: UK inflation data this week could keep markets on edge before the US numbers

That said, I would argue that the US PPI data from yesterday has helped to take some of the edge off. As such, markets should hold relatively calm as we await US trading later in the day. But considering the backdrop, any moves in European morning trade will be tentative as traders will be eyeing the US inflation figures to firm up any convictions.

0600 GMT – UK July CPI figures0645 GMT – France July final CPI figures0900 GMT – Eurozone Q2 GDP second estimate0900 GMT – Eurozone June industrial production1100 GMT – US MBA mortgage applications w.e. 9 August

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.