Dollar losing uptrend, stocks slide after weak earnings

Later in the day, the European CPI will be released, with the yearly change expected to continue rising to 3.7%, up from 3.4% previously. However, the core gauge will likely stay unchanged at 1.9%.

Additionally, the EU GDP data are due, and market participants forecast the yearly basis to drop to 3.5%, down from 14.3% in the previous quarter. In comparison, the quarter-over-quarter change should also weaken to 2.0%, from 2.2% previously. 

During the US session, the Fed's favorite inflation gauge - PCE inflation indices - will be released, and prices are expected to increase further measured by this methodology as well. Finally, the employment cost index is due, along with personal spending and income data. 

The dollar fell sharply yesterday, pushing both the EURUSD and the dollar index to their respective 50-day moving averages. Thus, it looks like the medium-term uptrend in the USD is over, and should the dollar drop below the 50-day average, we could see further losses.

Today, US equity indices are trading in negative territory as yesterday's Apple and Amazon earnings reports failed to meet estimates, sending both stocks lower. 

In commodities, precious metals were somewhat lower today, with gold falling below 1,800 USD and silver dropping below 24 USD, while oil was around 83 USD.