EUROPEAN SESSION
In the European session, we don't have anything on the agenda other than maybe a couple of central bank speakers who are likely to reiterate vigilance amid the geopolitical uncertainty and inflation risk.
The focus remains on US-Iran headlines after the first round of negotiations failed. I don't think anybody sane expected them to reach an agreement on the first round, but the openness for a second round is a good thing.
Nonetheless, the risk now is that the ceasefire gets breached as Trump decided to put pressure on Iran by blockading their ports. The risk of an escalation and the resumption of the war will likely keep weighing on the risk sentiment.
AMERICAN SESSION
In the American session, we just get the US existing home sales data which isn't going to matter for the market or the Fed, so the reaction will be muted.
Again, it's all about the US-Iran war and the Strait of Hormuz as this conflict is impacting negatively the global economy by pushing up energy prices and weighing on growth.
CENTRAL BANK SPEAKERS
- 12:00 GMT/08:00 ET - ECB's de Guindos (neutral - voter)
