US oil and gas producers will not raise output significantly in the coming yearsTrump mulls an AI czar – AxiosECB’s Rehn: Inflation expected to hit ECB’s target in 2025ECB’s Centeno: Inflation is getting close to the 2% targetECB’s Villeroy: Trump policies likely to have limited impact on European inflationPotential for dollar selling this month end – DeutscheECB’s de Guindos: Concerns about high inflation have shifted to economic growthEuropean equities marked lower at the open todayGerman economy minister says Trump tariffs threat must be treated seriouslyWhat are the main events for today?Eurostoxx futures -0.5% in early European tradingGold keeps lower to start the week, what are the levels to watch?A quiet one on the agenda in Europe todayICYMI: Tariff man is back in actionUSD/CAD in focus as Trump threatens Canada with tariffsJapan PM Ishiba calls for cooperation from businesses on bigger wage hikes
It’s been a calm session in terms of newsflow and data releases. We haven’t got any major development with the Trump’s tariffs threats during the Asian session being the only highlight.
In the FX space, we’ve seen all the spikes on the Trump’s news getting faded with the US Dollar now down on the day. The same theme has been going on in the equity markets with the US indices positive on the day and climbing.
Treasury yields maintain their downward pressure from the Scott Bessent nomination news which is also weighing on the greenback.
In the American session, the US Consumer Confidence report will be the main highlight but despite all the strong data we’ve got up to now the market continues to expect roughly three rate cuts by the end of 2025. This might imply that we will need more bad news on the inflation front to get the market to price out the remaining cuts.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
