The European session was relatively calm. The Eurozone Flash Q2 GDP showed a pickup in the second quarter, which is something we already knew from the PMIs, while the German economy continues to be the “sick man of Europe” as GDP disappointed showing a contraction.

We also got some CPI readings from Spain and Germany which showed further easing in inflation with the focus now switching to the Eurozone Flash CPI being released tomorrow. The market is seeing 50 bps of easing by year-end with a 63% probability of a rate cut in September.

The notable mover has been the JPY as it continues to drift lower heading into the BoJ decision tomorrow. We got a breakout of a key trendline in USD/JPY today which might have increased the bullish momentum but overall, it seems like there’s some general squaring of positions into the risk event.

Looking elsewhere, we are basically flat across all the other markets. The US Dollar, equities, bonds and gold are slightly positive, while crude oil and bitcoin are slightly negative on the day.

The focus will now switch to the US data with Job Openings and Consumer Confidence being released at 14:00 GMT/10:00 ET.