The key release in Europe later will be the Eurozone inflation data, where we should see a slight easing in the year-on-year figures.
The December release featured a +5.0% y/y reading but is estimated to fall to +4.4% y/y later today. That said, there is a caveat to note when interpreting the figure.
As with the German reading, there is the phasing out of the VAT change that led to a spike in inflation pressures last year. So, with the turn of the year, that will now be gone. Hence, said effects should also drag down the overall Eurozone figure.
As such, the ECB shouldn't prematurely call victory on the inflation front just yet. Only time will tell how the trend will continue to develop and how much pressure there would be on policymakers to step up.
1000 GMT - Eurozone January preliminary CPI figures
1200 GMT - US MBA mortgage applications w.e. 28 January
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.
