A massive heatwave and the showdown in the Conservative party may be stealing the headlines in the UK but in financial markets, the focus today is on the June consumer inflation report. After printing above 9% in May, we are expected to see annual inflation tick higher to 9.3% last month in the UK.
As things stand, I reckon we might reach a point where there is a balance that needs to be struck between soaring inflation pressures and the BOE's resolve as the economy grinds towards a likely recession. The fear is that as the latter draws closer, the former is still printing at the highs near double-digits and that just adds to worries about the outlook. But for now, we're not there yet.
In broader markets, risk is on the mend and the dollar is looking sluggish again. That seems to be the overarching theme this week as we build towards the FOMC meeting next week.
0600 GMT - Germany June PPI figures
0600 GMT - UK June CPI figures
0900 GMT - Eurozone May current account balance
1100 GMT - US MBA mortgage applications w.e. 15 July
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.