It's a slow start to the day after a bit of a back and forth session yesterday following the US CPI data. The inflation numbers mainly reaffirmed the latest Fed narrative, with bond yields slipping and that saw USD/JPY drop off back below 135.00. I shared some thoughts about what the data means earlier here.
If anything else, it should give markets some quiet confidence about the current outlook for major central banks. However, there is more work to be done and economic data in the months ahead will have to validate that. For today, we'll have the BOE on the agenda so they will be next in the firing line to keep up the balancing act.
In terms of what markets are looking for, you can check out my post yesterday here. But to cut things short, a 25 bps rate hike is the expected outcome and then we'll have to see if there will be any dovish/hawkish messaging after.
1100 GMT - BOE announces May monetary policy decision
1130 GMT - BOE governor Bailey press conference
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.
