In the European session, we have the final Manufacturing PMIs for a few European economies and the Eurozone Flash CPI. The data won’t change anything for the ECB so the market reaction will likely be limited.

In the American session, the focus will switch to the US NFP report although I continue to think that the data doesn’t matter now and the market is just waiting for the details of the first trade deal.

It seemed like we could get some news on that front yesterday after Hassett’s tease, but eventually nothing was announced and we continue to wait. As a reminder, they said that the first deal would have been announced this week of the next.

I think everything hinges on the details of that first trade deal. The data is old news and unless we see a notable deterioration in the labour market, the central bank won’t do anything. The US Jobless Claims have been stable and yesterday’s data was skewed by one-off effects.

This article was written by Giuseppe Dellamotta at www.forexlive.com.