EUROPEAN SESSION
In the European session, we don’t have anything on the agenda. The focus remains on US-Iran headlines with the latest tensions weighing on risk sentiment.
The good news is that the ceasefire is still holding although both sides are accusing each other of violating the ceasefire in relations to the events in the Strait of Hormuz.
This is keeping markets afloat, but the risk of a more pronounced selloff is high considering the recent rally in the US stock market. It goes without saying that US-Iran headlines will continue to dominate the price action until the situation in the Middle East is fully resolved.
AMERICAN SESSION
In the American session, the only highlight is the Canadian CPI report. The Trimmed Mean CPI Y/Y is expected at 2.3% vs 2.3% prior. The Canadian data has been pointing more towards rate cuts lately with substantial easing in core inflation and weak jobs reports.
Nonetheless, the market has been pricing in a rate hike by year-end due to higher energy prices. Today’s data is for March, so we are going to see an increase in headline inflation which is very much expected and shouldn’t trigger any notable market reaction.
CENTRAL BANK SPEAKERS
- 16:40 GMT/12:40 ET – ECB President Lagarde (neutral – voter)
