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EUROPEAN SESSION
In the European session, we don’t have much on the agenda other than a couple of low-tier releases like the Eurozone current account and Italian construction output. The data won’t change anything for the ECB, so the market reaction will likely be muted.
AMERICAN SESSION
In the American session, we get the US industrial production data but it’s not going to change anything for the Fed, so the market reaction is going to be muted. The focus now is on the Middle East, with Trump planning a meeting with Gulf leaders on the sidelines of the UN General Assembly in New York next Tuesday to discuss the next steps in the war with Iran.
Notably, the Iranian delegation will be allowed to participate. Amid the Saudi Arabia and Houthis attacks and the disruptions in the Strait of Hormuz, there have been promising signs of de-escalation efforts being set in motion. Such an outcome would send oil prices much lower, easing inflation and rate hikes concerns and improving significantly risk sentiment.
CENTRAL BANK SPEAKERS
- 13:30 GMT/09:30 ET – Fed’s Bowman (dovish – voter)
- 15:45 GMT/11:45 ET – Fed’s Schmid (hawkish – non voter)
This article was written by Giuseppe Dellamotta at investinglive.com.
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