EUROPEAN SESSION
In the European session, we have the final Spain’s Q2 GDP which is expected to confirm a 0.7% quarterly growth vs 0.7% in the preliminary reading. The data won’t change anything for the ECB, though, so the market reaction will likely be muted.
The markets are currently focused on renewed hopes for quick de-escalation and the reopening of the Strait of Hormuz following yesterday’s news that Iran has put a fast-track offer on the table, promising to reopen the Strait of Hormuz within seven days if the US meets its terms.
Iran’s Foreign Minister Araghchi is staying in New York over the weekend to await a US response. This has, of course, reversed the negative sentiment and risk assets started to get bid ahead of the weekend.
AMERICAN SESSION
In the American session, we don’t have much on the agenda other than a couple a low-tier releases like the US durable goods orders and the final UMich consumer sentiment report. None of the data is going to change anything for the Fed, so the market reaction will likely be muted. Again, the focus will remain solely on US-Iran developments as pretty much everything has been driven by oil prices in the past months.
CENTRAL BANK SPEAKERS
- 09:15 GMT/05:15 ET – Fed’s Williams (neutral – voter)
- 18:00 GMT/14:00 ET – Fed’s Hammack (hawk – voter)
- 18:00 GMT/14:00 ET – ECB’s Vujcic (neutral – voter)
This article was written by Giuseppe Dellamotta at investinglive.com.
