EUROPEAN SESSION
In the European session, the main highlights will be the inflation reports for France and Germany. The French HICP Y/Y is expected at 0.8% vs 0.8% prior, while the headline CPI Y/Y is seen at 0.9% vs 0.9% prior. There’s no inflation problem in France, on the contrary, it’s been below target for a while.
The German HICP Y/Y is expected at 2.2% vs 2.6% prior, while the headline CPI Y/Y is seen at 2.1% vs 2.3% prior. Inflation in Germany has been slowly trending lower but remains above target. All in all, unless we get big surprises, it’s unlikely that the data will change anything for the market pricing with traders seeing the ECB remaining on hold for the entire year.
AMERICAN SESSION
In the American session, we don’t have much on the agenda other than a couple of low tier releases like the Canadian Composite PMI, the US Redbook and the final S&P Global US Composite PMI. None of the data is going to change anything for the respective central banks.
CENTRAL BANK SPEAKERS
- 08:15 GMT/03:15 ET – ECB’s Cipollone (neutral – voter)
- 13:00 GMT/08:00 ET – Fed’s Barkin (hawkish – non voter)
