In the European session, we don't have much on the agenda other than the Eurozone final CPI which is not going to change anything for the ECB at this point.
In the American session, we will just hear from some more central bank speakers who keep on repeating the same stuff over and over again.
The focus for now remains on US-China developments but two new concerns were added to the list. On one hand we have some concerns around bad loans made by some regional US banks. On the other hand, we have some stress in money market rates.
The money market rates part is what matters the most as it's a tightening in financial conditions and can have serious impacts on the economy, especially with the US-China uncertainty.
Powell recently said that they are "approaching the end of QT as some signs have begun to emerge that liquidity conditions are gradually tightening, including a general firming of repo rates". Market participants will focus on this stress as the 2019 repo rate spike prompted the Fed to intervene.
Central bank speakers:
- 09:35 GMT/05:35 ET - BoE's Pill (neutral - voter)
- 11:00 GMT/07:00 ET - BoE's Greene (hawkish - voter)
- 12:35 GMT/08:35 ET - ECB's Nagel (neutral - voter)
- 16:15 GMT/12:15 ET - Fed's Musalem (hawkish - voter)
- 16:20 GMT/12:20 ET - BoE's Greene (hawkish - voter)
- 16:30 GMT/12:30 ET - BoE's Breeden (neutral - voter)
- 17:00 GMT/13:00 ET - ECB's Rehn (dovish - voter)
