It is a quieter one to start the day, after all the hot and heavy action from yesterday. It looks like markets are settling down in anticipation of the US CPI report coming up tomorrow. So far today, it's a snoozefest in FX especially as seen here.
There will be a couple of releases to watch in Europe though, with the main one being the UK labour market report. All eyes will be on the wages data to see if that will continue to run hot once again, putting further pressure on the BOE and the inflation outlook. The odds of a 25 bps rate hike later this month are at ~77% currently.
That aside, traders will have to look at broader markets once again i.e. bonds and risk sentiment for further clues on the day. But I reckon we might just get a bit of a placeholder session, as we wait on the key risk event tomorrow.
0600 GMT - Germany August wholesale price index
0600 GMT - UK August payrolls change
0600 GMT - UK July ILO unemployment rate, employment change
0600 GMT - UK July average weekly earnings
0700 GMT - Spain August final CPI figures
0900 GMT - Germany September ZEW survey current conditions, expectations
1000 GMT - US August NFIB small business optimism index
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.
