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Inflation releases dominate forex trading today – European CPI will tell us if Europe has also managed to encounter deflation, after growing in the second quarter. American CPI isn’t expected to move. And there’s more. Let’s see what’s up for today.

Europe posted a surprising recovery in the second quarter. Today we have more important European figures.  French Prelim Non-Farm Payrolls is expected to fall by 0.9% in the second quarter. Will there be a surprise also here?

The main figures are the Consumer Prices Index (CPI) and the Core CPI. While the all-European CPI is predicted to fall by 0.6%, Core CPI is predicted to rise by 1.4%. Both numbers are annually adjusted. Will deflation continue to weigh on Europe?

For more on the Euro, read the EUR/USD Outlook.

In Canada, Manufacturing Sales are expected to fall by 0.2%, which is much better than last month’s plunge of 6%. For more on the loonie, check out the Canadian Dollar Outlook.

CPI  in the US is the main event for today, but the prices aren’t expected to budge. Core CPI is expected to rise by 0.1%.

Later in the US,  Capacity Utilization Rate is predicted to remain almost unchanged, at 68.1.  Industrial Production is expected to turn positive, and rise by 0.1%.

Prelim UoM Consumer Sentiment will close the day, with an expected rise from 66 to 68.6. This indicator was always more optimistic…

That’s it. Happy forex trading!