US July CPI reading will be due at 1230 GMT
Inflation for July is expected to hold steady for the yearly estimate, with headline CPI expected at 2.9% while the core reading is expected to be at 2.3% - both similar to that in June.
As the market pauses for a breather now, you can catch up on some of the previews for the data later here (in case you missed Eamonn's post earlier).
Any misses on the data will likely prompt a slight knee-jerk reaction in the market and a lower dollar is likely to be seen. However, the inflation story isn't going to vanish just because of one reading and that will keep the Fed's hiking momentum intact. In the case of any beats in the data, watch out for USD/JPY and how Treasury yields will react to it.
Yields are now lower on the day driven by haven flows so a beat in inflation may see some retracement but I don't expect it to move things drastically when the major risk-off theme is still at play.
Besides US inflation, there is also Canada's July jobs report due at the same time (preview above as well) and the Baker Hughes oil rig count is due at 1700 GMT.
