Headlines:
- US consumer price inflation data takes center stage today
- Japanese yen still the main mover so far today
- USD/JPY holds lower amid BOJ apprehension
- China GDP growth seen rebounding to 4.9% next year - poll
- Headline inflation expected to fall to 2% target in 2H 2025 - ECB economic bulletin
- BOE completes sale of £19 billion emergency bond purchases
Markets:
- JPY leads, NZD lags on the day
- European equities higher; S&P 500 futures up 0.1%
- US 10-year yields down 1.3 bps to 3.532%
- Gold up 0.6% to $1,887.03
- WTI crude up 1.3% to $78.41
- Bitcoin up 3.7% to $18,207
As you'd expect, it was a quiet session in Europe as we count down to the US CPI data release later at 1330 GMT. A lack of economic releases on the calendar did not help with the slow pace with markets keeping more tentative for the most part.
However, the Japanese yen firmed, building on the advance from Asia after a report earlier in the day suggesting the BOJ will look to review the side effects of its easy policy at next week's meeting. USD/JPY declined from 131.80 through to 130.65 and is holding at the lows for the day ahead of the key risk event later.
The mood among other major currencies was more tepid with the dollar steady and staying little changed mostly.
Bonds were slightly more bid but gave some of that back during the session, as traders look to be more guarded in anticipation of the US inflation numbers to follow.
We're less than an hour away now. Let's finally get this party started!
