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Economic data to come in the European session

Just a few lightning bolts to get things done

The dollar was little changed that day, but commodity currencies at least hold a slight lead as risk sentiment is better placed for European trading.

US stocks posted a series of losses yesterday and futures remain a bit higher today which is helping the mood right now. The break in bond liquidation also brings some comfort, at least I would say.

Yesterday’s FOMC minutes didn’t reveal much new, but they essentially set the tone that we can expect a monthly drop of $ 15 billion that is expected to start in November or December (the moment no longer matters).

But if inflation continues to rise, expect this to spill over into the Fed’s rate hike expectations, even if policymakers dismiss the nature of those price pressures for now.

This will be a key story next year, as the market will have to balance the language of the Fed (that the phase-out and rate hikes are two separate sets of events) and potentially higher inflation in the first half of 2022.

Either way, data in Europe today isn’t going to offer much, so expect business sentiment to be still largely driven by the ebb and flow of things this week.

0630 GMT – Switzerland September producer and import prices

The previous version can be found here. Against a backdrop of increasing cost pressures and inflation, Swiss producer prices are expected to continue to rise by the end of the year.

0700 GMT – Spain – Final September CPI figures

The preliminary report is available here. The final statement should simply reaffirm that inflationary pressures in the eurozone are high towards the end of the third quarter.

That’s all for the upcoming session. I wish you the best of the days ahead and good luck in your trading! Stay safe there.

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