EUROPEAN SESSION:
In the European session, the main highlight was the UK Retail Sales report. The data came out negative disappointing expectations and weighing a bit on the pound. In the bigger picture, it doesn’t change anything for the BoE as it remains focused mainly on inflation.
Looking ahead, we will just get a couple low-tier releases like the French PPI and the Italian consumer confidence that won’t change anything for the ECB or the market, so the reaction will likely be muted.
AMERICAN SESSION:
In the American session, the only highlight will be the Canadian Retail Sales report. The data is not going to change anything for the BoC though, so I wouldn’t expect much from the release.
In fact, the Bank of Canada finished its easing cycle and can wait for an extended period of time to see how the economy evolves after the cuts. The market, on the other hand, isn’t waiting and has actually started to price in rate hikes for 2026 following several strong employment reports.
CENTRAL BANK SPEAKERS:
- 08:00 GMT/03:00 ET – ECB’s Wunsch (neutral – voter)
- 09:00 GMT/04:00 ET – ECB’s Kocher (neutral – voter)
- 10:00 GMT/05:00 ET – ECB’s Rehn (dovish – voter)
- 12:00 GMT/07:00 ET – ECB’s Cipollone (neutral – voter)
- 15:10 GMT/10:10 ET – ECB’s Lane (neutral – voter)
