A tentative rally in gilts is poised to extend and sterling could probably say goodbye to the strong side of $1.30.
Forecasts put Britain's annual CPI falling to 8.2% in June and core holding at 7.1%.
New Zealand sounded a warning in the Asia session, with food prices keeping annual headline inflation higher than expected at 6%.
Netflix (NFLX.O), Tesla (TSLA.O) and Goldman Sachs (GS.N) report results later in the day.
Key developments that could influence markets on Wednesday:Data: British CPI, Euro zone final CPI, U.S. housing startsSpeakers: Bank of England's Dave RamsdenEarnings: Netflix, Tesla, Goldman SachsReporting by Tom Westbrook; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.
Persons:
Tom Westbrook, BoE, Goldman Sachs, Morgan Stanley, Bank of England's Dave Ramsden, Muralikumar
Organizations:
Bank of, Traders, U.S, Netflix, Microsoft, CPI, Bank of England's, Tesla, Thomson
Locations:
U.S, Canada, gilts, New Zealand, Asia