EUROPEAN SESSION
In the European session, the only highlight was the UK CPI report. The data showed headline inflation easing in June due to lower energy prices but core inflation coming higher than expected, matching the prior month’s figure. Overall, the data doesn’t change much for the BoE as the majority of policymakers prefer to keep interest rates higher for longer rather than increasing borrowing costs. The market reaction to the data release was pretty muted.
AMERICAN SESSION
In the American session, we don’t have anything on the agenda as it’s usually the case for Wednesdays. The focus remains on US-Iran headlines as both sides continue to exchange strikes with no end in sight yet. This is keeping the risk sentiment on the defensive and such conditions will likely persist until we get a clear de-escalation.
This article was written by Giuseppe Dellamotta at investinglive.com.