Eurozone CPI the key release to watch in the session ahead

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Eurozone CPI the key release to watch in the session ahead

The dollar had looked poised for a strong break higher yesterday, only to get pulled back after Fed's Harker and Jefferson talked up the decision to "skip" a rate hike in June. That led to a significant repricing in rate hike odds for next month, with markets now erring to the side of there being no change in interest rates.

In particular, AUD/USD and NZD/USD are really on the brink with the former holding at 0.6500 and the latter at the 0.6000 level. Both are barely staying afloat after hitting fresh lows since November last year in trading yesterday.

And with China data coming in better today, that is at least helping to keep the mood somewhat steadier a little. S&P 500 futures are up 0.1% but staying little changed so far while most major currencies are still stuck in narrower ranges.

In Europe later, we will get core inflation for the Eurozone in May and that will be one to watch in gauging the rates outlook for the ECB. If there is any moderation in price pressures, just keep in mind that this will still represent just one month's worth of data and it will take many more months to convince of a real turnaround in the inflation outlook.

0600 GMT - Germany April retail sales data0600 GMT - UK May Nationwide house prices0600 GMT - Switzerland April trade balance data0715 GMT - Spain May manufacturing PMI0730 GMT - Switzerland May manufacturing PMI0745 GMT - Italy May manufacturing PMI0750 GMT - France May final manufacturing PMI0755 GMT - Germany May final manufacturing PMI0800 GMT - Eurozone May final manufacturing PMI0830 GMT - UK May final manufacturing PMI0830 GMT - UK April mortgage approvals, credit data0900 GMT - Eurozone May preliminary CPI figures0900 GMT - Eurozone April unemployment rate1130 GMT - US May Challenger layoffs, job cuts

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.

                This article was written by Justin Low at www.forexlive.com.

Source: Eurozone CPI the key release to watch in the session ahead

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