US CPI and Jobless Claims are due...>

US DATA PREVIEW: US CPI and Jobless Claims are due out at the bottom of the

hour. CPI is expected to rise 0.2% for a third straight month in June. The

year/year rates should stabilize after moving higher in May. AAA reported

another modest gain in mid-month prices from May, which could support a further

increase in CPI gasoline prices, while food prices are seen adding modestly. The

core CPI is forecast to also rise 0.2% following an as-expected 0.2% increase in

May, with the relatively large housing categories holding steady.

- The level of initial jobless claims is expected to fall by 5,000 to 226,000 in

the July 7 holiday week after rising by 3,000 to 231,000 in the previous week,

keeping the level in its tight range. The four-week moving average would still

rise by 1,250 in the coming week as the 221,000 level in the June 9 week drops

out of the calculation, assuming the MNI forecast is correct and there are no

revisions.