The dollar continues to sit in a comfortable spot this week, prepping for the next leg higher. The US retail sales data yesterday was yet another supportive factor, highlighting the strength and resilience of the US consumer. Meanwhile, stocks were offered across the board as the selling in August continues to define the equities theme so far.
Things are a fair bit quieter so far today with major currencies also not showing much appetite. EUR/USD is stuck within a 12 pips range, just above the 1.0900 mark. Talk about a snoozefest.
GBP/USD is not any better, holding in a 17 pips range in and around the 1.2700 level. However, things should pick up later in the session with UK inflation data coming up. Headline annual inflation is estimated to fall back under 7% but core annual inflation is still estimated to hold on the high side. On the latter, the estimates are showing just a fall to 6.8% in July from 6.9% in June.
That will keep the pound in focus before the attention turns towards the FOMC meeting minutes later in the day.
0600 GMT - UK July CPI figures
0900 GMT - Eurozone Q2 GDP second estimate
0900 GMT - Eurozone June industrial production
1100 GMT - US MBA mortgage applications w.e. 11 August
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.
