Economic data coming up in the European session

Author: Justin Low | Category: News

Just a couple of light releases to move things along

The dollar is little changed on the day but commodity currencies are holding a light advance at least, with risk sentiment in a better spot going into European trading.

US stocks snapped a run of losses yesterday and futures are keeping a little higher on the day now so that is helping with the mood at the moment. The pause in the selloff for bonds is also providing some comfort at least I would say.

The FOMC minutes yesterday didn't reveal much of anything new but it basically sets out the tone that we can expect a $15 billion monthly taper that should begin either in November or December (not that the timing matters anymore).

Fed
But if inflation continues to run hot, expect that to feed through to Fed rate hike expectations even as policymakers brush aside the nature of such price pressures for now.

That will be a key story next year as the market will have to balance out Fed language (that tapering and rate hikes are two distinct set of events) and potentially more persistently high inflation in 1H 2022.

Anyway, data in Europe today isn't going to offer much so expect trading sentiment to still largely be dictated by the ebb and flow of things this week.

0630 GMT - Switzerland September producer and import prices 
Prior release can be found here. The backdrop of rising cost pressures and inflation should see Swiss producer prices continue to push higher going into year-end.

0700 GMT - Spain September final CPI figures
The preliminary report can be found here. The final release should just reaffirm that inflation pressures across the euro area are elevated towards the end of Q3.

That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.

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