EUROPEAN SESSION

In the European session, we don’t have anything on the agenda today, so the markets will likely continue to trade based on the latest geopolitical developments. The week started on a negative note as Trump rejected Iran’s latest proposal that would have reopened the Strait of Hormuz within seven days.

Trump said that the conditions were unacceptable, but those conditions have been the same since the Memorandum of Understanding signed in June and that is the release of fronze Iranian funds, the lift of the sanctions and the US blockade, and finally the cessation of all hostilities in the Middle East (including Lebanon). Iran has never backed down from these conditions and has already reiterated that it never will. 

AMERICAN SESSION

In the American session, we just have the Dallas Fed Manufacturing PMI which is expected to tick sligthly lower to 7.8 vs 11.6 prior. This is never a market-moving release, and it’s certainly unlikely to be now that the focus is elsewhere. 

To sum up, the price action will likely continue to be driven by geopolitical developments, especially in the first part of the week given the lack of meaningful economic releases. 

CENTRAL BANK SPEAKERS

• 10:00 GMT/06:00 ET – BoE’s Ramsden (neutral – voter)
• 14:00 GMT/10:00 ET – ECB President Lagarde (neutral – voter)
• 16:10 GMT/12:10 ET – ECB’s Pereira (neutral – voter)
• 17:30 GMT/13:30 ET – Fed’s Barkin (neutral – non voter)

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



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