UK inflation data on the agenda today
The RBNZ showed up today and made clear that they aren’t afraid to lead the policy tightening charge, putting a stop to QE in a surprisingly hawkish decision earlier.
That has sent the kiwi soaring, gaining by 1% at the highs against the dollar to 0.7023 with NZD/USD still trading up around 0.7007 currently.
But before that, UK inflation data will be one to watch in European trading before we further digest the risk mood with bond yields continuing to rebound after some pushing and pulling following the US CPI data and Treasury auction yesterday.
10-year yields are at around 1.40% now, keeping well off the lows last week near 1.25%.
Looking out further to today, Fed chair Powell will also be testifying in Congress so be wary of any major policy remarks to follow from the man himself.
0600 GMT – UK June CPI figures
0600 GMT – UK June PPI figures
0900 GMT – Eurozone May industrial production data
1100 GMT – US MBA mortgage applications w.e. 9 July
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Amid the sudden turn higher rates this year, recent mortgage activity has dipped with purchases falling sharply alongside refinancing activity so it’ll be one to watch out for.
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.