EUROPEAN SESSION
In the European session, the only highlight is the German ZEW survey. The consensus sees a drop to 39.2 vs 58.3 prior likely due to the uncertainty created by the US-Iran war and the surging energy prices. The data is not going to change anything for the ECB though as the central bank continues to monitor the impact on inflation and mulling whether a rate hike will be needed.
AMERICAN SESSION
In the American session, we only have the weekly US ADP jobs data which hasn’t been a market-moving report for a long time now. Despite the very weak NFP report, all the other labour market data, including the ADP, have been pointing to stabilisation. The NFP might have been just a blip, but if we start to see deterioration in other data as well, then the Fed will have to take a hard decision because both the mandates will be in tension.
This article was written by Giuseppe Dellamotta at investinglive.com.
