Softer CPI Print Eases Pressure

• Inflation figures yesterday came in below expectations, with headline CPI at 4.2% versus 4.4% expected. However, trimmed mean inflation rose to 3.4% annually. Lower fuel prices helped soften the headline print, effectively ruling out a July rate hike.
• Household spending figures for April are due today and should provide further insight into how the household sector is holding up, the consensus is 5.8%.
• In the US, growth and inflation figures are due, with markets watching for further signals on what path the Fed will take with rates.
• US–Iran negotiations remain in focus amid confusion around reports of a peace deal, which Iran later deleted and the US denied. Despite this, hopes of a resolution and reopening of the Strait have kept oil prices lower.