Will we get to see some fireworks today? The US PPI data coming up later will be the one to watch. And it might take on much more importance, in terms of impact, considering that markets have been rather sidelined for over a week now. It’s all about how the US data will affect the Fed outlook at this point.

While the CPI report tomorrow is the be-all and end-all, we could get a taste of things to come from the PPI data later already. And for now, markets are looking rather pensive in the run up to that. Major currencies are extremely muted on the day with little change among dollar pairs as seen below:

The pound was the only notable mover earlier as it dipped slightly to 1.2510 before recovering back to 1.2550 levels now. But besides that, there is very little action overall.

In the equities space, European indices are also lightly changed with US futures still relatively flat at the moment. The same goes for bond yields and that’s a clear sign that traders are all sitting on their hands, waiting to potentially react later in the day.

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