Headlines:
- UK May CPI +2.0% vs +2.0% y/y expected
- How has the BOE rates pricing changed after the inflation data today?
- Eurozone April current account balance €38.6 billion vs €35.8 billion prior
- Japan's tourism sector continues to flourish going into the summer
- German economy minister says relationship with China has become more complex
- North Korea and Russia are entering a period of new prosperity, says Kim
- US MBA mortgage applications w.e. 14 June +0.9% vs +15.6% prior
Markets:
- AUD leads, NZD lags on the day
- European equities mixed
- Gold up 0.1% to $2,330.72
- WTI crude flat at $81.54
- Bitcoin up 0.5% to $65,189
It was a relatively quiet session with the only notable item on the agenda today being the UK CPI report.
Headline annual inflation fell to 2% to meet the BOE's target for the first time since 2021. However, core annual inflation is still on the higher side at 3.5% and services inflation even more so at 5.7%. The latter in particular continues to see traders lack confidence in chasing an August rate cut by the BOE.
The pound did nudge a little higher in the aftermath though, with GBP/USD up 0.2% to 1.2730 from around 1.2710 earlier.
But overall, the changes among major currencies are light. The dollar is mildly more mixed across the board, marginally lower against the euro and loonie as well. Meanwhile, the yen and kiwi are also marginally lower on the day as the ranges among dollar pairs are still quite narrow.
It's a US holiday today, so that explains the rather lackadaisical market action. We'll now have to wait until the SNB and BOE tomorrow to change up the pace.