Arguably the most important data for this week will be released later on today: the U.S. Consumer Price Index. Both headline and core CPI are expected to have risen 0.2% month-over-month in July. On a year-over-year basis, CPI is seen rising to 1.8% from 1.6% in June, while core CPI is expected to have remained unchanged at 1.7% last month. If the Producer Price Index (PPI) measure of inflation is anything to go by then CPI may also miss expectations. If so, the U.S. dollar could resume its downtrend, which could underpin buck-denominated precious metals further in these times of heightened geopolitical uncertainty.
The war of words between the leaders of the United States and North Korea continue to dominate investor sentiment. After the initial stock market sell off, U.S. indices recovered to close at their highest levels on the session yesterday, only for the index futures to tumble again as the new trading day got underway overnight in Asia.