What is the market anticipating ahead of the US CPI data later?
The market is gearing up for what it expects to be a blockbuster US CPI report later today but really, will it tell us anything that we don’t already know? I don’t think so.

As confirmed by EU economy commissioner, Paolo Gentiloni
Well, it wasn’t to say that they were ever that effective in the first place.

Latest data released by Eurostat – 12 May 2021
The jumps in production of non-durable consumer goods (1.9%), energy (1.2%) and intermediate goods (0.6%) were offset by falls in capital goods production (1.0%) and durable goods (1.2%) during the month of March.

Reuters reports, citing a government source on the matter
The source says that the German cabinet has approved plans today to allow for people who have been fully-vaccinated against COVID-19 or recovered from the disease to enter the country without having to undergo the quarantine procedure.

The Nasdaq faces a key technical challenge today
The drop yesterday already sees price fall to test its 100-day moving average (red line) and given how futures are pointing downwards by another 1.3% currently, it looks like the open is going to be an ugly one for the Nasdaq.

European indices are down by over 2% currently
The term ’selloff‘ is one that is used quite frequently these days but as major stock indices reach record highs and fall off, I’d much prefer the term ‚pullback‘.

Some mild changes in the dollar as risk keeps more defensive
The dollar is sitting a touch lower against the euro, pound and aussie but is holding slight gains against the franc and loonie so far on the session. Overall, the moves among major currencies are relatively minor and nothing to shout about.

Latest data released by NFIB – 11 May 2021
Of note, the report also revealed a significant increase (10 points) in the share of firms that raised prices to 36.0 – its highest since the 1980s. Meanwhile, planned price increases also jumped to its highest since 2008 in another sign that inflation is picking up.

The Australian Treasury releases its annual budget for the coming fiscal year
The forecast details:
Of note for the RBA, the government forecasts CPI to only return above 2% from 2022-23 onwards with wage growth keeping below 3% through the forecast period.

Forex news from the European trading session – 10 May 2021
Headlines:
Markets:
– GBP leads, JPY lags on the day
– European equities mixed; S&P 500 futures up 0.1%