The US July consumer price inflation report is due later at 1230 GMT
The risk mood continues to keep more tentative, with European indices mildly higher while US futures are still pointing to a slight rotation away from tech as Dow futures are flat while Nasdaq futures are marked down 0.4%.
That comes as Treasury yields are inching higher in European morning trade, with 10-year yields up nearly 3 bps close to 1.37% currently.
In FX, the dollar is holding slight gains as USD/JPY hits a five-week high near 110.80 while EUR/USD continues to linger near key support @ 1.1704-11 for the time being.
Commodity currencies are slightly on the backfoot as well with the aussie down 0.3% against the greenback, slipping to 0.7325 but still within its recent range.
All eyes are now on the US CPI data release later today in case there are any surprises for the market to work with/react to. Citi argues that one should be watching the details closely as much of transitory strength has already played out in June. Adding that:
Risk of a stronger inflation print will likely further support a sooner tapering announcement and possible rate hikes in 2022.
