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Economic data to come in the European session

The ECB on the agenda today

Be wary of the bond market action as we navigate the latter stages of the week, although month-end trading may make things more complicated to interpret when trying to get a reading closes on the room.

The fall in long rates and the flattening of the yield curve are what stand out the most and have weighed on the yen pairs in recent days.

If anything, that also says a lot about the economic outlook and confidence (or should I say lack of confidence) in the recovery over the next year horizon.

Stocks appeared to be heading forward yesterday, but a late sell-off saw the S&P 500 and the Dow drop as the Nasdaq closed at almost unchanged levels that day. In the midst of falling yields, tech stocks might come out a bit to party, so keep that in mind.

Looking ahead today, the ECB is one to watch as the market will try to see what the central bank thinks about the whole inflation picture.

As inflation expectations remain higher and the market puts pressure on the ECB on the rate front, it will be interesting to see how policymakers strike a balance by pushing back.

0700 GMT – Spain – Preliminary October CPI figures

The older version can be found here. Spain’s annual inflation is expected to remain on the rise this month as mounting price pressures in the region continue to contribute to a surge in consumer inflation towards the end of the year.

0755 GMT – Germany October unemployment rate change, rate

The older version can be found here. German labor market conditions have shown gradual improvement, but it still takes time to get a better and more accurate assessment of general conditions with the leave program still ongoing.

11:45 GMT – ECB announces October monetary policy decision

The September political decision can be viewed here. In terms of big decisions, this will likely be a meeting booked for December. However, the key thing to watch out for will be the central bank’s language / emphasis on inflation and whether it will address this specifically or whether it will focus on any plausible action if it turns out not to be ” transient ”. But if anything, I would expect it to be addressed by Lagarde rather than the statement.

1200 GMT – Germany, preliminary October CPI figures

The older version can be found here. German annual inflation is expected to rise again this month, reaffirming the current trend. Either way, we’ll get a better idea of ​​this via status readings throughout the day.

12:30 GMT – Press conference by ECB President Lagarde

Language is paramount here, as the ECB must strike a balance between not giving in on the political front while perhaps needing to recognize the risks associated with inflation and the slowing euro area economy in the end. year and next year. The emphasis will be on his words about inflation, but I still expect Lagarde to maintain that the price pressures are somewhat temporary, but perhaps in a less firm tone than before.

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

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