Recall minutes before Wednesday's Close, the USD was broadly sharply sold, the catalyst being CBS reports that lawmakers say Trump indicated he'll fire Powell; he asked GOP yesterday on the possible sacking. Those headlines of course followed comments from US Treasury Secretary Bessent Tuesday who suggested the formal process for a Powell successor had already started.

Well, overnight, US President Trump denied he is seeking to remove Fed Chair Powell, after raising the idea in a closed-door meeting with congressional Republicans that leaked to the media, Bbg reports. Trump also suggested that he doesn't rule out anything, but thinks it's highly unlikely, unless Powell has to leave for fraud.

The USD is in mixed shape at the very start of the day though the week's (and month's?) relatively underlying bid largely holds, as the US 10-year yield stays near to recent range highs just below key 4.50-52% area resistance.

Post US CPI/PPI, Fed's Williams said he sees tariffs having a bigger impact on inflation in coming months, making the Bank’s current restrictive stance entirely appropriate, while Bostic said he supports keeping rates on hold.

Meanwhile, the Beige Book showed US economic activity increased slightly between late May and early July.

Overall, not so dovish. Still!

The Aussie starts just below the psychological and arguably near-perm pivotal 0.6500, independently weighed by last night's Australia employment report for June. The unemployment rate rose unexpectedly to 4.3% and -38.2k full-time workers were lost. Interestingly, Nomura suggest with cracks now appearing, the RBA will likely cut rates by -25BPs at their August, November and February meetings.

Ahead, at the top of the hour, the highly awaited UK AWE earnings/employment change reports. GBP has largely been unable to sustain much of a bid despite yesterday's June headline CPI beats, in part due to the softer numbers expected today.

Earlier in the week, a KPMG and REC report showed hiring by UK companies fell at the fastest pace in nearly two years in June, with firms dialing back on recruiting for roles set to be altered by AI.

Later, we also get Eurozone final June CPI, expected to be confirmed at 0.3% m/m and 2.0% y/y, with the core at 2.3% y/y.

In the second half, US retail sales and initial claims leads. The former is expected to rebound a touch at 0.1% m/m in June vs -0.9% the month previous, with the latter seen rising to 233k from 227k.

On the central bank front, ECB's Villeroy and Fed's Kugler are scheduled speakers.

Meanwhile, UK and German leaders will reportedly sign a new treaty in London, pledging mutual defense and closer cooperation. The pact is said to include a commitment to develop a long-range missile system. .