Inflation the main focus in European trading today

<p>The dollar is keeping somewhat steadier so far, helped out by a bounce in USD/JPY after BOJ governor Ueda played down expectations of a policy tweak later this month. The pair is now trading back above 139.00 as we see some quarters of the market get a little disappointed. Here is some context if you need it:</p><ul><li><a href="https://www.forexlive.com/news/higher-japanese-yields-tees-up-potential-for-another-boj-disappointment-20230712/" target="_blank" rel="follow">Higher Japanese yields tees up potential for another BOJ disappointment</a></li><li><a href="https://www.forexlive.com/news/the-fed-and-ecb-may-not-be-the-biggest-central-bank-risks-to-markets-this-month-20230717/" target="_blank" rel="follow">The Fed and ECB may not be the biggest central bank risks to markets this month</a></li></ul><p>Meanwhile, equities continue to go on a tear with tech stocks also keeping more buoyed. The AI boom run continues to gather pace and we might be angling for a strong breakout in the bigger picture for this year.</p><p>Elsewhere, a weaker Chinese yuan continues to put a dent on the aussie and kiwi in trading today. AUD/USD is down another 0.4% to 0.6785 as the rejection near 0.6900 continues to hold for now.</p><p>Looking ahead to Europe today, inflation is back on the menu but the focus will be on the UK CPI data as noted <a href="https://www.forexlive.com/news/will-uk-inflation-data-give-sterling-another-boost-this-week-20230718/" target="_blank" rel="follow">here</a>. The Eurozone reading will be the final estimate, so that shouldn't be of much impact.</p><p>0600 GMT – UK June CPI figures0900 GMT – Eurozone June final CPI figures1100 GMT – US MBA mortgage applications w.e. 14 July</p><p>That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.</p>

This article was written by Justin Low at www.forexlive.com.