Inflation Data in Focus This Week

At 4:30 AM UK May core PPI m/m (exp 0.3%, prev 0.1%)
UK May core PPI y/y (exp 2.3%, prev 2.4%)
At 8:30 AM Canada Q1 Capacity Utilization (exp 83.5%, prev 82.5%)

The dollar remains supported heading into the week against the euro, sterling and yen – as traders continue to price in an unchanged Fed for the rest of the year. Yields on US Treasuries climbed higher last week as the 10-year yield jumping past the 5% mark. The outlook for US growth and inflation remains mixed, resulting in increased scrutiny over incoming economic data.

The coming week will see several key pieces of data, consisting of May retail sales, business inventories, producer price index, NY Fed manufacturing survey, consumer price index, current account deficit, capacity utilization, TICS, and the University of Michigan sentiment survey. Traders will closely analyze US inflation reports as well as bond market reaction to gauge market sentiment of the Fed’s interest rate outlook.