EUROPEAN SESSION

In the European session, we get the Flash PMIs for the major Eurozone economies and the UK. The market focus might now shift to growth, given the aggressive tightening already priced in.

Inflation data remains at the top of the list, but if the economic activity data starts surprising to the downside, then we might see a dovish repricing for the 2027 curve which could weigh on the respective currencies. 

AMERICAN SESSION

In the American session, we have the US Flash PMIs and again, the focus will be on whether economic activity continues to hold or it’s starting to deteriorate. Manufacturing PMI is expected at 53.7 vs 53.9 prior, while the Services PMI is seen at 55.8 vs 56.5 prior. A major downside surprise could trigger a dovish repricing.

Attention will also remain on US-Iran developments, given the important role of oil prices in influencing short-term inflation and interest rate expectations. We got some positive news yesterday and the US-Iran talks on the sidelines of the UN General Assembly were described as constructive and promising, but the timeline for the end of the conflict remained uncertain. Trump mentioned, though, that another meeting was scheduled in the very near future. 

CENTRAL BANK SPEAKERS

• 07:00 GMT/03:00 ET – ECB’s Vujcic (neutral – voter)
• 08:50 GMT/04:50 ET – ECB’s Zigman (hawkish – voter)
• 14:00 GMT/10:00 ET – BoE’s Lombardelli (neutral – voter)
• 14:05 GMT/10:05 ET – Fed’s Barr (neutral – voter)
• 16:00 GMT/12:00 ET – ECB’s Cipollone (neutral – voter)
• 16:30 GMT/12:30 ET – ECB’s Lane (neutral – voter)

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



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