The U.S. dollar was seen strengthening on the day after data showed that consumer prices had increased 0.2% on the month as expected. Core inflation rate increased 0.2%, beating estimates of a 0.1% increase.
In the European trading session, the UK’s labor market data showed that average earnings including bonuses increased just 2.5% as forecast was and slower than the previous month’s print of 2.6%. The UK’s unemployment rate held steady at 4.2%.
The economic calendar is busy today starting with the release of the UK’s inflation data. Economists forecast that consumer prices increased 2.4% on the year ending May 2018. This would mark the same pace of increase compared to the previous month’s data. Core CPI is also expected to rise at a pace of 2.1%.
Data from the Eurozone will focus on the quarterly employment change. The report is expected to show a 0.3% increase marking a same pace of increase compared to the previous quarter.
In the NY trading session, following the release of the producer prices index data, the FOMC meeting becomes the focus. The Federal Reserve is expected to hike interest rates by 25 basis points and will also release the economic projections and the press conference chaired by Jerome Powell.
