Major currencies aren't doing much on the new day, after the dollar's rebound was halted in trading yesterday. Equities were in a more tentative mood in Wall Street, so that is not leaving a lot to work with as we get settled into the new day.
US futures are a touch lower while bond yields are little changed, holding just marginally higher. As such, currency traders are sent back to the drawing board as the dollar advance on Friday and Monday has been arrested but the drop yesterday isn't anywhere near the limits that we saw at the end of last week.
Markets will be looking for a trigger point to guide them and for the pound, it may come from today's UK CPI data.
Headline annual inflation is expected to cool back under 10% while core annual inflation is also estimated to slow slightly to 6%. If any of that are a beat on estimates, it should provide the pound with a bit of a lift as markets price in another 25 bps rate hike for the BOE in May.
As things stand, the current pricing by the OIS market sees 78% odds that the central bank will hike by 25 bps next month.
0600 GMT - UK March CPI figures
0800 GMT - Eurozone February current account balance
0900 GMT - Eurozone March final CPI figures
0900 GMT - Eurozone February construction output
1100 GMT - US MBA mortgage applications w.e. 14 April
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.
