Lack of economic data turns focus to UK CPI numbers

A barren economic calendar from the Eurozone and the US has
forced the market to trade in a very small range. Markets are now
looking to the minutes released from the Federal Reserve’s last
meeting on 21^st May. Despite economists and policy
makers signalling that the US recovery is showing signs of growth
coupled with a stable labour market Janet Yellen’s comments are
expected to be on the lines of a broadly economic stable state. US
Fed members Plosser and Dudley speak later this evening on the
economy as well as monetary policy. EUR/USD currently opens
slightly lower at 1.3705 as investors keenly anticipate Mario
Draghi’s decision to cut rates and possibly increase further easing
next month. German producer prices make for the only reading out on
the economic calendar today from the Eurozone.

Sterling has remained stable this week given the lack of
economic today as most of the importance now lies with
CPI numbers from the UK due for release today. Preliminary
expectations are that prices have increased by 1.7 per cent (year
on year) just short of the BOE target of 2 per cent. GBP/USD opens
at 1.6810, slightly weaker after Bank of England Governor Mark
Carney warned that surging house prices now posed the biggest
threat to the UK economy. Along with CPI data, UK house prices are
also due for release today.

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