The main highlight in the European session was the UK CPI, which was a disappointment for the BoE as the data remained unchanged from the prior figures. That ruled out a rate cut in August. For the rest of the session there’s no other notable event (the Eurozone CPI is not going to be a market mover given that it’s the final reading).
Moving on to the American session, we will get the US Housing Starts and Building Permits, followed by the US Industrial Production and Capacity Utilization. Finally, we will hear from Fed’s Waller, who is a key FOMC member because he’s been a
“leading indicator” for changes in Fed’s policy. Although it’s unlikely that he will signal anything today, he might lean on a September cut conditional to further improvement in the inflation data.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
