EUROPEAN SESSION

In the European session, we have the Swiss unemployment rate and the final Eurozone Q2 GDP report. The data won’t change anything for the respective central banks, so the market reaction will likely be muted. 

As a reminder, the ECB is widely expected to hike by 25 bps at the upcoming meeting, bringing the policy rate to 2.50%, while signalling lower appetite for further tightening. The SNB, on the other hand, is expected to keep interest rates unchanged at least until June 2027. 

AMERICAN SESSION

In the American session, we don’t have anything on the agenda with the US out for Labour Day. This might keep the price action mostly rangebound, especially with traders waiting for the US CPI on Friday to decide whether the Fed is going to hike at the upcoming meeting or keep interest rates steady for another month. 

As a reminder, Fed’s Waller delivered surprisingly dovish comments on Thursday, which triggered a dovish repricing in interest rate expectations and lowered the probabilities for a rate hike to 48%. The Waller-driven moves, though, were erased pretty much across the board on Friday after the NFP number tripled consensus estimates. The rate hike odds jumped back to 56%, which is roughly the level we’ve seen before Waller’s speech. 

This article was written by Giuseppe Dellamotta at investinglive.com.



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