EUROPEAN SESSION

In the European session, we don’t have anything on the agenda other than the French industrial production report. The data is not going to change anything for the ECB, so the market reaction will likely be muted. 

As a reminder, the ECB is widely expected to hike interest rates by 25 bps tomorrow, bringing the policy rate to 2.50%. According to “ECB sources”, the central bank will also signal less appetite for further tightening, raising the bar for additional rate hikes. The market, on the other hand, is still pricing in high chances of another rate hike in December.

AMERICAN SESSION

In the American session, there’s only the weekly US ADP employment change data, but this is not a market-moving release. As a reminder, the US NFP report showed job growth in August almost tripling the consensus estimate of 56K, with the unemployment rate remaining unchanged at 4.1%. The US labour market data has been stable in recent months and not a source of concern. 

We have also ECB President Lagarde and ECB’s Nagel speaking today but they are not going to talk about monetary policy given the quiet period. 

CENTRAL BANK SPEAKERS

• 17:00 GMT/13:00 ET – ECB President Lagarde (neutral – voter)
• 17:00 GMT/13:00 ET – ECB’s Nagel (neutral – voter)

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