The dollar is keeping steadier once again, after the slight gains yesterday. USD/JPY is contesting last week's high of 156.78 while EUR/USD is inching back towards a test of its 100-day moving average of 1.0814. This follows from the Fed minutes overnight, which while being more hawkish can be deemed as outdated after the US CPI report last week.
Looking to European trading today, PMI data will be the focus point on the agenda. The euro area and UK economies both showed a modest improvement in Q1 and that is also reflected in April for the most part. The bounce in economic activity is at least giving both the ECB and BOE some breathing room, so as to not cut rates sooner rather than later.
The estimates for May are expected to come in thereabouts as per the April readings, reaffirming a steadier economic picture at least. So, we'll see on that. It won't do much to change the ECB outlook but any setbacks in UK data could be troublesome to the BOE especially after the hotter UK CPI report yesterday.
0715 GMT - France May flash manufacturing, services, composite PMI
0730 GMT - Germany May flash manufacturing, services, composite PMI
0800 GMT - Eurozone May flash manufacturing, services, composite PMI
0830 GMT - UK May flash manufacturing, services, composite PMI
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.
