Inflation data in focus in European trading

<p>The dollar is keeping steadier so far this week, even with falling Treasury yields at play. 10-year yields are now down to 4.015%, looking set for a third straight daily decline. It has even fallen back below the 200-day moving average of 4.089%, yet the dollar remains unfazed. It seems like traders are more inclined to wait for the Fed before really committing to any moves.</p><p>In the equities space, we are observing more sluggish sentiment as tech stocks struggle. Microsoft and Alphabet reported better earnings estimates overnight but both stocks are sold in after-hours trading. Nasdaq futures are down 0.8% and that is weighing on S&amp;P 500 futures as well, down 0.4%.</p><p>European stocks remain a bright spot though, with the CAC 40 hitting record highs and the DAX also aiming for that later today. The inflation data in the session ahead could play a role in influencing that.</p><p>The French and German inflation numbers are up today, making them the highlights of the agenda in Europe. Both are estimated to show a drop in price pressures, helping to give the ECB added flexibility on rate cuts timing if need be.</p><p>0700 GMT – Germany December retail sales0700 GMT – Germany December import price index0700 GMT – UK January Nationwide house prices0745 GMT – France January preliminary CPI figures0855 GMT – Germany January unemployment change, rate0900 GMT – Switzerland January Credit Suisse investor sentiment1200 GMT – US MBA mortgage applications w.e. 26 January1300 GMT – Germany January preliminary CPI figures</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

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