UK Inflation Takes Centerstage

At 1:00 AM Japan May Confidence Index (exp n/f, prev 47.4)
At 4:30 AM UK May CPI m/m (exp 0.3%, prev 0.3%)
UK May CPI y/y (exp 2.6%, prev 2.8%)
UK May RPI m/m (exp 0.4%, prev 0.5%)
UK May RPI y/y (exp 4.3%, prev 4.5%)
UK May RPI-x m/m (exp 0.4%, prev 0.5%)
UK May RPI-x y/y (exp 3.3%, prev 3.6%)
UK April Trade Balance (exp –7.0 bln stg, prev –7.04 bln stg)
At 5:00 AM E-13 April Industrial Production m/m (exp 0.2%, prev 0.4%)
E-13 April Industrial Production y/y (exp 4.4%, prev 3.7%)
At 2:00 PM US May Federal Budget (exp $-70.0 bln, prev $42.91 bln)

GBP Edges Higher Ahead of Inflation Reports
Cable recovered the 1.97-level in early Tuesday trading with several key indicators of UK inflation due out later in the session. Markets will try to discern how aggressive the Bank of England will be over the coming months to rein in inflation as CPI continues to hover well above its 2% target. The barrage of reports today consist of May CPI, RPI, RPI-x and April trade balance.