• EUR/USD eyes April and May highs in latest push above 1.1000
• GBP/USD stays on the hunt of the 1.3000 mark
• USD/CHF on the verge of a steeper drop
• AUD/USD gets checked back ahead of US CPI data
• BOE: Global economic outlook is highly uncertain, risk environment is challenging
• BOE’s Bailey: UK economy, financial system have been resilient so far
• Spain June final CPI +1.9% vs +1.9% y/y prelim
• US MBA mortgage applications w.e. 7 July +0.9% vs -4.4% prior
• Fed speakers due today include Barkin, Kashkari, Bostic, Mester. Fed Beige book also.

Markets:

• JPY leads, GBP lags on the day
• European equities higher; S&P 500 futures up 0.3%
• US 10-year yields down 3.8 bps to 3.944%
• Gold up 0.2% to $1,935.18
• WTI crude up 0.3% to $75.04
• Bitcoin up 0.5% to $30,726

It was a quieter session in Europe today as all the focus in markets is on the US CPI data to come later at 1230 GMT.

The dollar was softer initially but recovered some ground to keep more mixed, albeit marginally lower, on the day. EUR/USD stuck above the 1.1000 mark around 1.1020-30 levels while USD/JPY did fall below 140.00 to a low of 139.31 before keeping around 139.40-50 levels at the moment.

Meanwhile, cable got checked back on a move higher with the high earlier touching 1.2969 before retreating to 1.2915 currently. And AUD/USD also saw a similar move in a push to 0.6741 before falling back to 0.6690, near flat levels on the day.

In other markets, bond yields continue to be dragged lower while equities are keeping some optimism for a better (lower) set of inflation numbers later today.

Overall, the dollar is looking to be on the brink of a next leg lower and we’ll see if the US CPI data will deliver on that.

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