What are the main events for today?
EUROPEAN SESSION
In the European session, the main highlight was the UK employment report. The data was mostly in line with expectations although a bit on the soft side in terms of wage growth, which is a welcome news for the BoE. Overall, the data didn’t change anything for monetary policy expectations, so the market reaction was limited.
Looking ahead, we will get the German ZEW economic sentiment index which is expected at 15.3 vs 10.5 prior. The data won’t change anything for the ECB which is expected to hold rates steady at the upcoming meeting. Therefore, the market reaction will likely be muted.
AMERICAN SESSION
In the American session, we just have the weekly US ADP employment change. This was a market moving report when it was first released back in October 2025 but the market forgot about it quickly after it became clear the US labour market stabilised.
The focus will remain on US-Iran headlines as Trump is said to be weighing between a ceasefire and a full-scale war. It goes without saying that a ceasefire would be positive for risk sentiment, while a full-scale war would have a very negative impact on the markets.
This article was written by Giuseppe Dellamotta at investinglive.com.