In the European session, we don’t have much on the agenda other than a couple of low tier releases like the Eurozone current account data.
In the American session, we have the US Housing Starts/Building Permits and the University of Michigan Consumer Sentiment report. The housing data continues to be largely ignored as the focus remains on employment/inflation.
The UMich is expected at 61.5 vs 60.7 prior. This indicator, as many other soft data, has been improving recently and will likely continue to do so after the passage of Trump’s bill and expected easing in tariff uncertainty.
The inflation expectations data in the survey might attract more attention. They’ve been pulling back since the cycle high reached in April and will likely continue to do so.
Overall, despite Fed’s Waller opinion, the Fed is not going to cut rates in July for sure. There’s nothing in the data to suggest such a move at this point.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
