Headlines:
- All eyes are on the US CPI data later today
- UK May monthly GDP +0.5% vs 0.0% m/m expected
- Germany June final CPI +7.6% vs +7.6% y/y prelim
- France June final CPI +5.8% vs +5.8% y/y prelim
- Spain June final CPI +10.2% vs +10.2% y/y prelim
- IEA warns that global oil inventories remain critically low
- Italian politics back on the menu
Markets:
- CHF leads, JPY lags on the day
- European equities lower; S&P 500 futures up 0.3%
- US 10-year yields up 0.5 bps to 2.963%
- Gold up 0.2% to $1,729.63
- WTI crude up 0.9% to $96.68
- Bitcoin up 2.1% to $19,830
It was a quiet session for the most part, with markets awaiting the US CPI data release later in the day.
The dollar was steady early on but is seeing some light weakness now as there are some positioning flows ahead of the key economic release at the bottom of the hour. EUR/USD stuck around 1.0030-50 mostly before creeping up to near 1.0070 currently.
Meanwhile, GBP/USD got a light nudge up from 1.1905 to 1.1930 after UK data showed a beat for May monthly GDP. That said, it comes with a caveat as it was mostly due to health services while retail continued to struggle amid the cost-of-living crisis. As the dollar steadied, GBP/USD fell back to 1.1890 before picking up now to 1.1930 again.
AUD/USD was a decent performer, gaining 0.6% to 0.6795 though the movement still lacks any real impetus before we get to the US CPI data release.
Equities were more mixed as US futures kept a little higher but all eyes will be on the inflation numbers to see what is on offer for the remainder of the week.
