In the European session, we don't have anything on the agenda other than Italian Industrial Production data. This is never a market-moving release and it certainly won't change anything for the market or the ECB.
In the American session, we get the US PPI report. This is the only highlight of the day. Core PPI Y/Y is expected at 3.5% vs 3.7% prior, while the M/M measure is seen at 0.3% vs 0.9% prior. As usual, the market will likely focus on the components that feed into the PCE.
Last month, the PPI surprised to the upside by a big margin but it was mainly due to investment services and eventually the hawkish reaction got quickly faded. I think the CPI tomorrow will be more important and it will also come out at the same time of Jobless Claims to make things a bit spicier.
Nonetheless, another upside surprise in PPI might keep things a bit more on the defensive trading into the CPI, while a soft report could give the risk sentiment a boost.
