EUROPEAN SESSION
In the European session, we don't have much on the agenda other than a couple of low tier releases like the Eurozone Sentix index and the German Current Account balance. None of the data is going to change anything for the ECB or the market, so the reaction will likely be muted.
The overnight news of the US Department of Justice subpoenaing the Federal Reserve is the main highlight of the day which caused the US Dollar to weaken across the board and gold to jump to new record highs. The lack of other catalysts might see the current moves extending throughout the day.
AMERICAN SESSION
In the American session, we don't have anything on the calendar other than the 10 year note auction. The focus has now turned to the US CPI report tomorrow. A Fed rate cut in January is now out of the question following the good US NFP report on Friday where the unemployment rate dropped to 4.4% vs 4.6% prior. The market continues to bet on two rate cuts this year with the first one expected in June.
CENTRAL BANK SPEAKERS
- 08:50 GMT/03:50 ET - ECB's de Guindos (neutral - voter)
- 17:00 GMT/12:00 ET - ECB's Villeroy (dovish - voter)
- 17:30 GMT/12:30 ET - Fed's Bostic (hawkish - non voter)
- 17:45 GMT/12:45 ET - Fed's Barkin (hawkish - non voter)
