Barclays Capital FX Strategy Research notes that the June flash euro area inflation (Friday) will allow markets to reassess expectations regarding the ECB, which has so far shown caution and disappointed market expectations for more changes in forward guidance.
"We forecast headline inflation to slow to 1.3% y/y (previous: 1.4% y/y), with downside risks, while core inflation should increase to 1.0% y/y (previous: 0.9% y/y), with upside risks," Barclays projects.
On the US data front, Barclays note that PCE (Friday) is the main data release.
"We expect the headline PCE price index to have declined 0.1% m/m but to have risen 1.5% y/y, with the core PCE price index flat on the month and up 1.4% y/y, in line with the consensus," Barclays adds.
Barclays expect EUR/USD to range-trade in the near-term.
Source: Barclays ResearchOriginal Article
