European stocks have pared earlier gains with most regional indices now marginally lower. UK stocks remain the exception with the FTSE 100 being up 0.6%, helped out by the softer inflation report earlier today. Meanwhile, S&P 500 futures are down 0.2% as US futures are also looking rather tepid on the session.

You would think that with softer inflation in the UK, risk trades will be ripping higher on a day like this. That especially since the UK is one where most market players were anticipating to have more stubborn inflation. Instead, we’re getting a rather lukewarm response and mixed flows. If anything else, I’d argue that lighter trading conditions are starting to come about now as we move towards the home straight for the year. That should characterise the remainder of the week as well as trading next week too.

This article was written by Justin Low at www.forexlive.com.