Risk turns slightly softer in European morning trade
European equities got off to a good start but all of that has been erased now as regional indices turn red with US futures also marked down by 0.3% currently.

The ECB continues to try to play the ‚transitory‘ card
And that will be the name of the game until they feel the squeeze of being pushed into a corner. It is going to be interesting to see how this all plays out with the hawks at the central bank considering that base effects and the

Remarks by ECB policymaker, Martins Kazaks
Again, the nature of inflation may yet be ‚transitory‘ but the challenge for central banks is figuring out how long that may be. With supply bottlenecks set to continue through to next year and the pandemic still stifling a synchronised global recovery, ‚transitory‘ could mean another year of high cost/price

Forex news from the European trading session – 16 September 2021
Headlines:
Markets:
– NZD leads, CHF lags on the day
– European equities higher; S&P 500 futures down 0.1%

Estimates suggest a 0.7% m/m decline in retail sales for August
The drop on the month will owe much to a plunge in auto sales, so look towards that for any „spin“ on the report later today if the market is to go with the narrative that the economy is still holding up ahead of next

A look at what is on the board for today
Just a couple to take note of on the day, as highlighted in .
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That said, they aren’t anything too significant but we’ll see how price action responds to the US retail sales data later today.

German conservatives trail further in the latest Kantar poll
Support for the SPD is seen at 26% (+1) while the conservatives i.e. CDU/CSU is seen at 20% (-1) in the latest poll by Kantar for Focus magazine.

Goldman Sachs‘ take on the BOE
Adding that they see the central bank hiking rates to 1% by Q4 2023, which makes the whole ordeal more of a gradual tightening.

Forex news from the European trading session – 15 September 2021
Headlines:
Markets:
– JPY leads, AUD and NZD lag on the day
– European equities mostly lower; S&P 500 futures up 0.1%

Goldman Sachs weighs in on the latest surge in energy prices
The firm says that they see risk of power blackouts for industries in Europe and that with a „harsh winter“ nearing, there are risks of a greater surge in electricity and gas and that prices need to rise in order to reduce demand.