EUROPEAN SESSION

In the European session, we don’t have much on the agenda other than a couple of low-tier releases like the SNB minutes and the UK CBI. None of the data will change anything for the respective central bank, so the market reaction will be muted. 

The market sentiment is currently in risk-off as Middle East tensions escalated late yesterday after the reports that the US military was reducing its troop presence at bases across the Middle East, while the State Department was ordering staff cuts at diplomatic posts in the region. The reports linked the moves to regional threats and the possibility of US military action against Iran. 

The sentiment then deteriorated further after the New York Times reported that the US and Israeli militaries have developed specific plans for renewed strikes on Iran after the US midterm elections. The US is assembling forces, including three aircraft carriers, thousands of Marines, fighter jets and special operations units, which are expected to be fully in place by early November.

AMERICAN SESSION

In the American session, the only highlight is the release of the latest US Jobless Claims figures. Initial Claims are expected at 200K vs 199K prior, while Continuing Claims are seen at 1720K vs 1710K prior. The data hasn’t been market-moving for several months because the market got used to stable labour market conditions. I would expect this to continue unless we get a significant deterioration that increases growth fears. 

CENTRAL BANK SPEAKERS

• 09:30 GMT/05:30 ET – ECB’s Kocher (neutral – voter)
• 14:00 GMT/10:00 ET – ECB’s Panetta (neutral – voter)

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



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