EUROPEAN SESSION
In the European session, we just have the final Eurozone CPI report. This is not going to change anything for the ECB, so the market reaction will be muted. The focus remains on US-Iran headlines as the current crisis is keeping growth risks skewed to the downside and weighing on risk sentiment.
AMERICAN SESSION
In the American session, we get a few US data releases including Housing Starts/Building Permits, Import/Export prices, Industrial Production/Capacity Utilization and the University of Michigan Consumer Sentiment report.
The data is unlikely to change anything for the Fed at this point, so the market reaction will likely be muted. The chances for a rate hike in July have fallen to just 10%, so that’s not going to happen. The probabilities for September have also dropped below 50% as traders revised their expectations after the soft US inflation data this week.
The peak inflation narrative has replaced Fed tightening worries, and the US-Iran crisis is the only thing holding back the mood.
CENTRAL BANK SPEAKERS
- 10:00 GMT/06:00 ET – ECB’s Cipollone (neutral – voter)
This article was written by Giuseppe Dellamotta at investinglive.com.
