Spanish, German inflation in focus today

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Major currencies are little changed to start the day with the dollar holding its ground yesterday, as we saw USD/JPY rise back above 136.00.

Month-end flows may be a consideration, with Citi suggesting that dollar buying is likely to take hold. Elsewhere, the early optimism in equities was quickly dashed again and Wall Street succumbed to a beating by the time the closing bell struck. US futures are steadier so far today but that isn’t indicative of much after the heavy selling yesterday.

Of note, Treasury yields are fairly on the retreat at the moment with 10-year yields down 4 bps to 3.135%. The push and pull continues to play out ahead of month-end and I don’t think it will be easy to gather any firm convictions amid the messiness.

That said, euro area inflation data will be a focus point in the days ahead. Today, we will get numbers from Spain and Germany. And if the German industrial state figures are any indication, there could be a surprise to the downside and that will be a fresh development for markets to chew on this week.

0700 GMT – Spain June preliminary CPI figures
0800 GMT – Eurozone May M3 money supply
0800 GMT – Switzerland June Credit Suisse investor sentiment
0900 GMT – Eurozone June final consumer confidence
0900 GMT – Eurozone June economic, industrial, services confidence
1100 GMT – US MBA mortgage applications w.e. 24 June
1200 GMT – Germany June preliminary CPI figures

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.