EUROPEAN SESSION

In the European session, we don’t have much on the agenda other than a couple of low-tier releases like the French PPI and ECB meeting minutes. The data won’t change anything for the ECB, so the market reaction will be muted. 

As a reminder, the ECB is widely expected to hike interest rates by 25 bps in September, bringing the policy rate to 2.50%. This was also confirmed by “ECB sources” which reported that the central bank is ready to raise interest rates in September but added that there’s little appetite to signal further tightening afterwards. 

AMERICAN SESSION

In the American session, the only highlight is the US Jobless Claims figures. Initial Claims are expected at 208K vs 206K prior, while Continuing Claims are seen at 1790K vs 1799K prior. 

The US labour market has stabilised in recent weeks after a string of strong jobs data. Anyway, unless there are big deviations from expectations, the data is unlikely to be market-moving given the Fed’s focus on inflation.

CENTRAL BANK SPEAKERS

• 14:00 GMT/10:00 ET – Fed’s Hammack (hawk – voter)

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