EUROPEAN SESSION
In the European session, the main highlight was the UK employment report. The data came mostly in line with expectations, so the reaction was muted. Looking ahead, we don’t have much on the agenda other than the German ZEW index. It’s expected to improve to 50.0 vs 45.8 prior but it’s not going to change anything for the ECB.
The focus remains on the recent Trump’s escalation over Greenland. There’s a tentatively positive development as CNN reported that Trump “conceded in a weekend phone call with British Prime Minister Keir Starmer that he may have been given bad information on the announcement of troop deployments from European countries to Greenland”.
Now, it’s just about waiting to hear (or most likely read on Truth Social) from the man himself. Trump said he will hold a meeting with various parties in Davos on the matter. As a reminder, Trump will be in Davos tomorrow and will give a speech. He will stay until Thursday, so watch out for posts on his Truth Social or headlines regarding Greenland before the weekend.
AMERICAN SESSION
In the American session, we don’t have much on the agenda. The focus will be on the potential US Supreme Court decision on Trump’s tariffs. The decisions are usually announced around 10:00 ET/15:00 GMT.
We will also get the weekly US ADP jobs data but it’s not been a market-moving release lately. We likely need big surprises to trigger a market reaction. Nevertheless, the data has been pointing to gradual improvement in the labour market.
CENTRAL BANK SPEAKERS
- 16:30 GMT/11:30 ET – ECB’s Nagel (neutral – voter)
- 16:30 GMT/11:30 ET – SNB’s Chairman Schlegel (neutral – voter)
