The Euro underperformed in overnight trade in a move that appeared corrective following Friday’s outsized advance. The Japanese Yen traded lower as stocks firmed in Asian trade, undermining demand for the perennial anti-risk currency.

Eurozone CPI and GDP figures headline the economic calendar in European trading hours. News-flow out of the regional bloc has increasingly outperformed relative to consensus forecasts in recent weeks. This suggests analysts’ models are underestimating the economy’s vigor and opens the door for upbeat surprises.

A pickup on the inflation front may pass with little fanfare considering its limited implications for near-term ECB monetary policy. A better-than-expected growth reading may speak to resilience in spite of the would-be cooling effects of uncertainty linked to the Brexit referendum, which may boost demand for EUR-denominated assets and echo positively for the single currency.

The spotlight then moves to September’s US PCE data. The Fed’s favored inflation gauge is seen putting core growth at 1.7 percent year-on-year, matching a two-year high. An upbeat print may boost rate hike bets and the US Dollar, though follow-through could be limited ahead of this week’s FOMC announcement.

Asia Session