EUROPEAN SESSION
In the European session, we don’t have much on the agenda other than the Swiss consumer confidence and the Italian industrial production. None of the data will change anything for the respective central banks, so the market reaction will be muted.
Keep in mind that the risk sentiment has turned positive since yesterday after Trump said on Truth Social that the US is having productive discussions with Iran and that they will not be attacking Tehran at any time prior to the midterm elections. This has triggered a reversal in crude oil as traders started to unwind the escalation premium.
AMERICAN SESSION
In the American session, we have the Canadian employment report and the US University of Michigan consumer sentiment survey. The Canadian employment change is expected at 9.2K vs -41.7K in the prior month, and the unemployment rate is seen ticking up to 6.5% vs 6.4% prior. The data is unlikely to change much for the Bank of Canada with core inflation around target, unless we see some big deviations.
The University of Michigan consumer sentiment is expected at 47.6 vs 48.1 prior. This is not a market-moving report in general, but it can be so at extremes or turning points. It’s geared towards consumers’ financial situations, so higher inflationary pressures tend to depress the index. That’s why it weakened a lot in 2025 due to tariffs, and in 2026 due to higher gasoline prices.
CENTRAL BANK SPEAKERS
- 07:30 GMT/03:30 ET – ECB’s Wunsch (neutral – voter)
- 13:30 GMT/09:30 ET – ECB’s Schnabel (hawkish – voter)
- 20:00 GMT/16:00 ET – Fed’s Collins (neutral – non voter)
This article was written by Giuseppe Dellamotta at investinglive.com.
