The market is in search for a bit of a relief after yesterday's bloodbath. It was an absolute stinker of a day across all asset classes where only the dollar (and oil) came out on top in a flight to safety.
The mood today is looking calmer but that's just a bit-part reprieve I would say, at least for now. Overall sentiment is still on a knife's edge and the jitters since the latter stages of last week is still reverberating. That could very well stay the course at least until we get to the Fed tomorrow.
As things stand, market expectations are ramping up on a 75 bps rate hike. Eamonn had more on this earlier here and here.
The bottom line is that everyone believes the Fed is behind the curve and if they are to act even more aggressively in the months ahead, it may cause the house of cards to come tumbling down.
There will be a couple of releases in Europe to move things along but nothing that should distract from the overall focus on the Fed and risk sentiment currently this week.
0600 GMT - Germany May final CPI figures
0600 GMT - Germany May wholesale price index
0600 GMT - UK May claimant count change
0600 GMT - UK April ILO unemployment rate, average weekly earnings
0900 GMT - Germany June ZEW survey current conditions, outlook
1000 GMT - US May NFIB small business optimism index
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!