Another busy day on the calendar today:
EU session:
For the European session the market will be keeping a close eye on the French inflation data after the downside surprise we saw in both the Spanish and German inflation data yesterday. The EUR got a nudge lower on the data, and if the French data should show a similar drop it could spark some additional volatility for the EUR and rates markets.
EZ regional data
US session:
For the US session, the focus will be on the Fed’s preferred measure of inflation US Core PCE.
However, we know that in the current context the Fed’s focus has shifted towards the labour side of their mandate and is less focused on inflation. So, unless we see a truly magnificent deviation I’m not sure whether today’s PCE will offer much volatility for the risk event traders like me.