UK July inflation data due today
US stocks hit an all-time high in trading yesterday as the dollar fumbled a little bit more with the pound taking advantage to break its 9 March high of 1.3200. EUR/USD is also taking a look above its three-week range between 1.1700 and 1.1900 currently.
To start the new day, major currencies are little changed but the technical levels continue to hint that the dollar looks vulnerable to extended declines in the sessions ahead, especially with the market mood keeping more calm for now.
Looking ahead, there is little to distract from the same themes that are playing out since the start of the week so let's see if we will get some extended moves or the tricky August trading period will hold more twists and turns along the way this week.
0600 GMT - UK July CPI figures
0600 GMT - UK July PPI figures
Prior release can be found here. Inflation pressures are expected to keep at more subdued levels amid the fallout from the virus outbreak and that will keep BOE policymakers on their toes with regards to taking action sooner rather than later in fear of falling into the deflation trap. If current conditions persist towards the year-end alongside worsening labour market conditions, expect talk of negative rates to pick up considerably.
0800 GMT - Eurozone June current account balance
Prior release can be found here. An indication of flows in/out of the euro area economy, which continues to be hampered by the virus fallout for the time being.
0900 GMT - Eurozone July final CPI figures
The preliminary report can be found here. As this is the final release, it shouldn't have much impact on markets in general.
1100 GMT - US MBA mortgage applications w.e. 14 August
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. The focus will once again be on purchases as that has been one of the more bullish spots outlining that US economic conditions are not as dire as first suggested by the recent dip due to the coronavirus impact.
Also, just be mindful that the OPEC+ JMMC meeting is scheduled to take place today. There are reports that the meeting will take place at 1400 GMT but knowing OPEC+, it could very well be delayed so it will happen when it happens.
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.
