This week sees a pick-up in activity on the economic calendar, with inflation data from several major regions due in the coming days. Tomorrow, the United States will release its CPI (YoY) figure, with the market expecting a 0.2% increase in the inflation rate, rising from 2.4% to 2.6%. This expected uptick has led markets to further scale back the likelihood of a rate cut at the upcoming FOMC meeting later this month, with the probability of a cut now sitting at just 6.7%.
On Wednesday, attention will turn to the United Kingdom, where CPI (YoY) is expected to remain unchanged at 3.4%. Rounding out the week, the Eurozone will publish its CPI (YoY) on Thursday, with markets similarly expecting no change, holding steady at 2.0%.