EUROPEAN SESSION

In the European session, we don’t have much on the agenda other than a few low tier releases that won’t change anything for the ECB or the market. Policymakers are now focused on the euro strength and how that is going to impact inflation going forward. We already had a softer than expected inflation report last month and if that’s going to continue with euro at these levels, the market might start to price in a rate cut before year-end.

AMERICAN SESSION

In the American session, we get a few low tier releases like the US trade balance and US Factory Orders but the focus will be on the US Jobless Claims figures. Initial Claims are expected at 205K vs 200K prior, while Continuing Claims are seen at 1850K vs 1849K prior. We’ve been seeing notable improvements in the US Jobless Claims data that seem to suggest a pickup in labour market activity.

Another strong report might trigger a bit of a hawkish repricing as we head into the US NFP report next week. That could support the dollar in the short-term given the recent selloff.

CENTRAL BANK SPEAKERS

• 14:30 GMT/09:30 ET – ECB’s Cipollone (neutral – voter)

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



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