UK July inflation report the main highlight of the session
Good day, everyone! Hope you're doing well as we get into the new trading session later on. It's been a decent start to the session so far with the dollar leading the charge across the board but moves have been modest thus far. Let's see if we get an extension later on in European trading.
Trading today may be marred by thinner-than-usual liquidity (as if summer liquidity wasn't bad enough) as French and Italian banks will be closed in observance of the feast day of the Assumption of Mary.
0830 GMT - UK July inflation report
Prior report can be found here. Annual headline inflation is expected to tick higher to 2.5% but the core figure is expected to remain at 1.9%. Much like the jobs report yesterday, it's not going to feed too much into the BOE's plans for the next rate hike any time soon but that doesn't mean the data should be ignored. The short-term focus for the pound is Brexit but this is among the accompaniments that build trading sentiment. If within expectations, I don't expect the data to do much to lift or sink the pound.
1100 GMT - US MBA mortgage applications w.e. 10 August
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That's all for the session. I wish you all the best of days ahead and as always, good luck with your trading!
