A mild one on the data docket to wrap up the week

Comic 12-07

Happy Friday, everyone! Hope you're all doing well as we look to get things going in the European morning session.

The dollar is once again on the back foot to start the trading day but with Treasury yields holding up, it continues to make for a tough argument to see protracted weakness in the greenback. 10-year yields, despite being down by 1.4 bps, are seen at 2.124% currently - little changed since Powell's testimony on Wednesday.

Looking ahead, we'll have some data points to move things along but the focus will remain on the Fed as markets work out the debate on whether the Fed is looking at an "insurance rate cut" or introducing the start of a more aggressive easing cycle. As such, expect more choppy trading in the dollar still to come.

0600 GMT - Germany June wholesale price index

Prior release can be found here. The index measures the value of sales made by wholesalers in Germany, it provides an indicator of consumption and retail pattern. A minor data point.

0700 GMT - China June trade balance data

Do take note that the timing here isn't set in stone as the release may come earlier/later than scheduled. Expectation is for trade conditions to hold up modestly in yuan terms, but in dollar terms it should reflect softer conditions. Eamonn had the heads up earlier here. The details for the May report can be found here.

0700 GMT - Spain June final CPI figures

The preliminary report can be found here. As this is the final release, it isn't expected to have much - if any - impact on markets whatsoever.

0900 GMT - Eurozone May industrial production data

Prior release can be found here. Factory activity is expected to improve slightly in May but relative to a year ago, softer conditions continue to prevail and that will be reflected in the release here later on. A minor data point but feeds into overall euro area economic sentiment, especially to the narrative of a softer Q2 industrial sector.

That's all for the session ahead. I wish you the best of days ahead and good luck with your trading!