Markets are eagerly anticipating a key event tomorrow, with traders feeling the impatience building as the countdown continues. The kiwi is the only major currency showing some movement today, while others seem to lack the motivation to make any significant changes. For example, the EUR/USD pair is still stuck within a narrow 13-pip range as the day progresses, making it quite uneventful for traders.

The main focus for traders is the upcoming US inflation report scheduled for tomorrow. This anticipation is causing a lack of clear direction in the markets today, as traders hold back on making big moves before this significant event. The expected headline annual inflation rate for June is 3.1%, indicating a slight decrease from the previous month. However, core annual inflation is forecasted to stay steady at 3.4%, the same as in May. Traders will be closely watching the details of the report, as they were key takeaways from the previous month’s release.

Tomorrow’s inflation report will also coincide with the weekly jobless claims data, adding an extra layer of complexity to the trading environment. Traders should be prepared for potential market reactions to this combined data release. In the meantime, today’s agenda is relatively quiet, with the 10-year Treasury notes auction being the only notable event on the schedule. As a result, traders are mostly biding their time and waiting for the main event to unfold tomorrow.

Overall, the markets are in a holding pattern as they await the upcoming US inflation report. Traders are bracing themselves for potential volatility and market movements based on the data to be released tomorrow. In the meantime, they are staying cautious and keeping a close eye on any developments that could impact their trading decisions. The anticipation is high, and the countdown to tomorrow’s key event continues.