It is all about the reaction to the US CPI data yesterday and for now, markets are looking calmer so far today. The dollar dropped heavily and may look to be challenged further, with EUR/USD leading the charge as seen here. Meanwhile, equities look poised to extend gains with S&P 500 futures now seen up 0.3%.

In European trading today, we will be getting some data points to move things along but nothing to really shift the narrative above. UK CPI data is the big release to watch but don't expect a similar reaction in broader markets to this one as compared to the similar data from the US yesterday.

Consumer prices in the UK is expected to fall further in October, with headline annual inflation set to dip to 4.8% from 6.7% in September. A big chunk of that is due to declining energy prices, especially with the Ofgem price cap now reduced much lower from the £2,500 level during the same period last year. That being said, services inflation might prove to be sticky and that will be one small consideration to watch.

Apart from that, we will have German wholesale prices and Eurozone trade balance before the focus shifts towards more key US data releases as noted here.

0700 GMT - Germany October wholesale price index
0700 GMT - UK October CPI figures
0745 GMT - France October final CPI figures
0900 GMT - Italy October final CPI figures
1000 GMT - Eurozone September trade balance data
1200 GMT - US MBA mortgage applications w.e. 10 November

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.