- All eyes on the US CPI report later today
- Dollar loses some ground to start European morning trade
- Stocks remain hopeful ahead of US CPI report
- A quick glance at the Fed funds futures curve before the main event today
- Italy July final CPI +5.9% vs +6.0% y/y prelim
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields down 0.4 bps to 4.003%
- Gold up 0.3% to $1,921.01
- WTI crude down 0.5% to $84.00
- Bitcoin flat at $29,481
It was once again another quiet session in Europe, with a lack of key economic data releases not really helping the mood.
Markets are gearing towards the US CPI report later today, so there wasn’t really much to work with in European morning trade.
The dollar sagged during the session but the losses weren’t anything too substantial, while risk trades are holding some hopeful optimism ahead of the inflation numbers later.
EUR/USD moved up from 1.0990 to 1.1030 while USD/JPY slipped from 144.10 to 143.70 levels during the session. As stocks are keeping higher on the day – at least for now – the commodity currencies are also holding higher. AUD/USD is up 0.6% to 0.6560 levels currently, though the coast isn’t clear yet after the test of 0.6500 this week.
After the dip buying in Wall Street fumbled late yesterday, stocks are keeping higher so far today. That said, we’ll see if the US CPI report will validate that sentiment later on.
This article was written by Justin Low at www.forexlive.com.