COMMODITIES: Gold Partially Pares Some of This Week's Earlier Decline

• MNI: EUROZONE JUN FLASH HICP +2% Y/Y
• MNI: EUROZONE JUN FLASH CORE HICP +2.3% Y/Y

Big expiry in EUR Thursday at 1.1800.

Of note:

EURUSD 3.5bn at 1.1700 and 2.08bn at 1.1800.

EURUSD 2.05bn at 1.1700 and 1.47bn at 1.1800 (wed).

EURUSD 2.68bn at 1.1700 and 4.62bn at 1.1800 (thu).

USDCAD 1.07bn at 1.3600 (thu).

AUDUSD 2.55bn at 0.6600 (fri).

• EURUSD: 1.1700 (3.5bn), 1.1750 (951mln), 1.1800 (2.08bn).
• USDJPY: 143.00 (200mln), 143.40 (280mln), 143.50 (560mln), 143.60 (203mln), 143.65 (300mln).
• USDCAD: 1.3600 (360mln).
• AUDUSD: 0.6560 (874mln).

• Latest press lower for the USD has prompted GBP/USD to show to a new cycle high at 1.3773 - this is now the best marked levels since October 2021 and extends the bull cycle in the pair.
• USD is certainly the driver here, and while GBP is firmer against the EUR on the day, GBP/JPY is under pressure as the cross undergoes a corrective pullback off last week's highs.
• An uptick in futures volumes on the break to new highs clearly helping here, and shifts focus to 1.38 round number resistance and then the October 20th 2021 high beyond at 1.3835
• The difficulty of passage of today's welfare bill in the House of Commons may not be directly market relevant, but the scale of opposition will serve as a further reminder of the hurdles facing the PM's pro-growth agenda.