Risk is on the retreat to start the day and that is putting the dollar back in favour for the time being. The yen is also more bid after yesterday's meltdown with Treasury yields dropping back as well ahead of European trading. Meanwhile, oil is a notable mover with the latest drop bringing into focus key technical support levels as outlined here.
It looks like after the breather at the start of the week, markets are starting to settle back into last week's routine as central bank policy actions and inflation developments continue to dictate the big picture view.
UK inflation will be the key release to watch in the session ahead with estimates looking for a +9.1% y/y reading in May after the +9.0% y/y reading April. With the BOE having touted double-digit inflation to come in the months ahead, it will be interesting to see if things will develop according to their projections.
0600 GMT - UK May CPI figures
1100 GMT - US MBA mortgage applications w.e. 17 June
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.
