U.S. consumer prices rose only slightly in July as airline fares recorded their biggest drop since 1995. The consumer Price Index edged up 0.1 percent last month, with gasoline and food prices increasing marginally. July's rise marked a sixth straight monthly increase.
While inflation remains soft, a strengthening economy, marked by a tightening labor market and a firming housing sector, should give the U.S. central bank confidence it will gradually move toward its 2 percent target,
USD lost some ground last night as the minutes showed some specific concern about the slower growth in China, which led some investors to question the likelihood of a rate hike in September. It was notable that they did mention China, because typically Fed minutes address U.S. economic conditions and don’t normally veer off into economic conditions in other countries
The German parliament approved a third bailout for Greece on Wednesday after Finance Minister Wolfgang Schaeuble said the country should get a new start. The Bundestag vote cleared one of the final obstacles to Greece getting funding so that it can make a 3.2 billion-euro (£2.3 billion) debt repayment to the European Central Bank on Thursday. The Bundestag, whose backing is essential for the release of bailout funds, approved the plan by 454 votes to 113, with 18 abstentions
If the third bailout is completed, Greece will have taken 320 billion euros in loans from the euro zone and International Monetary Fund, although it has paid back some of it, including interest.
A report out from Markit yesterday revealed around half of British households expect the Bank of England to hike interest rates in the next six months. Markit's monthly Household Finance Index showed 48 percent of households predict the BoE will raise interest rates over the next six months, the highest figure since July 2014 and up from 34 percent last month
GBP - 9:30 - Retails Sales (YoY) expected to rise to 4.4% from 4%.
USD - 13:30 - Initial Jobless claims expected to fall to 272k from 274k.