Another busy day on the economic calendar, but is it possible for the compass to move in any significant way.
Japanese inflation data during the Asian trading period was not as surprising as it usually is, and it will not be enough to influence the decision-making process at the Bank of Japan.
Later in the EU session, we have some preliminary inflation data scheduled in France, Spain and Italy. These data could have been more important had it not been for the political chaos caused by Macron's early election, and with the recent upward trend we have seen in inflation in the European Union, it can be argued that moving up would be the biggest surprise, but its impact could be less than expected with the emergence of election risks.
During the US trading period, we have Monthly Personal Consumption Expenditures data, which is the Fed's preferred indicator for measuring inflation, as both the CPI and PPI data experienced good deviations, and the price reaction to both was short-term. At the moment, the US dollar seems to be driven more by possible flows at the end of the quarter and, of course, the ongoing political risk premium.
Next week will probably be the best opportunity to find some good data-driven reactions from the US dollar with the release of the next round of jobs figures.
On the other hand, today we have a talk by both Parkin and Bowman from the Fed.
And from the Canadian economy today we will have the monthly GDP.
