Inflation data looks like it will dominate the day, with both the US and UK publishing CPI figures.

The EURUSD ended the session lower overnight after beginning the day at $1.10321. The pair remained steady early before edging up to a high of $1.10380 mid-session. The euro fell away soon after, falling to a low of $1.10018 late in the day. It has come off those lows and is currently trading at $1.10089. The GBPUSD traded flat yesterday, taking a breather from the recent rally. The pair opened the day at $1.28521 and dipped to lows of $1.28149 mid-session. The pound climbed off those lows to hit a high of $1.28735 late in the day. It has given up some of those gains and is currently trading at $1.28510.

The Dow took a breather overnight, trading in a tight range for most of the day. The index opened 27,702.45 and dipped to a near session-low of 27,647.50 early in the day. It spent a large chunk of the session building up to a peak of 27,770.66. The Dow dropped late in the day, hitting lows of 27,635.65 before closing at 27,690.50. The Dax made some solid gains overnight after opening the day at 13,197.54. The German index dipped to lows of 13,187.23 before rallying for most of the day, hitting highs of 13,308.35 late and closing at 13,272.10.

The day ahead is littered with crucial economic data, with the US and UK coming into focus. The US is set to release month on month CPI and Core CPI data, while the UK is publishing year on year CPI figures. The US economy is tipped to show inflation of 0.3% (up from 0% at the last reading), while core inflation is expected to come in at 0.2% (up from 0.1% at the last reading). Meanwhile, the UK economy is forecast to show inflation growth of 1.6% (down slightly from 1.7% at the last release).

Other data published today includes:

Japan – PPI

Australia – Westpac Consumer Sentiment, Wage Price Index

Europe – European Industrial Production, German Final CPI

UK – Core CPI, HPI, RPI, PPI Input & Output

US – Federal Budget Balance, Fed Chair Jerome Powell Testifies

NZ – Official Cash Rate, RBNZ Monetary Policy Statement, Rate Statement and Press Conference

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