Major currencies are not up to much to start the day, after some mixed flows in markets yesterday. The dollar eased lower alongside a drop in bond yields, despite a softer risk mood in equities. That is leaving EUR/USD back above 1.0800 with USD/JPY just under 157.00 as we look to European trading today.
Month-end flows will remain a consideration but there will be several things to watch on the agenda as well. Eurozone inflation data for May is one of that, before we get the official Japan MOF numbers on yen-tervention. Then later in US trading, there is the US PCE price data to focus on.
The spotlight in Europe will be the inflation numbers with core annual inflation estimated to hold steady at 2.7%. In any case, the reading we get today will not change the ECB decision for next week. And as for what the ECB might do beyond June, we’ll have to scrutinise the data in the months ahead instead.
The above will be key drivers for trading sentiment before the week ends, alongside the overall risk mood and bond market moves once again.
0600 GMT – Germany April import price index0600 GMT – Germany April retail sales0600 GMT – UK May Nationwide house prices0645 GMT – France Q1 final GDP figures0645 GMT – France May preliminary CPI figures0800 GMT – Italy Q1 final GDP figures0830 GMT – UK April mortgage approvals, credit data0900 GMT – Italy May preliminary CPI figures0900 GMT – Eurozone May preliminary CPI figures
And at 1000 GMT, the Japan MOF will be releasing the official figures for yen intervention over the last four weeks.
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.
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