EUROPEAN SESSION
In the European session, we don’t have much on the agenda other than a couple of low tier releases like the German industrial production and the Swiss consumer confidence that won’t change anything for the respective central banks.
In fact, the focus right now is solely on the US-Iran war and surging oil prices because this is what is going to affect the economies and the data in the future. All the data we are getting now is old news at this point.
AMERICAN SESSION
In the American session, we just have the NY Fed inflation expectations survey, which is not a market-moving report. Again, what matters now is how long the US-Iran war lasts.
Trump focused on oil prices in his latest post which might be a sign that we are reaching his pain threshold. The US stock markets have also finally extended the losses into new lows following last week’s resilience. This is turning into a very expensive war for him.
Traders are now laser focused on a de-escalation signal from the US or Israel as that would trigger a massive relief rally in stocks and selloff in oil prices.
