Risk markets are opening the session slightly better bid, but moves are expected to be limited ahead of the keenly awaited US inflation report (13:30 UK) and the latest Federal Reserve monetary policy decision (19:00 UK). Markets expect core inflation y/y to nudge 0.1% lower to 3.5%, while headline inflation is expected to remain unchanged at 3.4%. Any notable deviation from these forecasts would fuel a spike in market volatility.
