Oil Prices Surge Amid Disruptions and Inflation Fears
The European session is off to a quiet start, with the Swiss PPI report being the only notable release. However, market experts expect little reaction from this data, as it won't change anything for the SNB.
The focus has shifted to oil prices, which have surged above $100 per barrel due to disruptions in key shipping routes and increased supply concerns following Saudi Arabia's shutdown of a key oil pipeline after drone attacks. This has put pressure on the market, with WTI and Brent trading at elevated levels.
Looking ahead, the situation in the Middle East and the FOMC rate decision on Wednesday will be crucial for markets. Meanwhile, in the American session, the Canadian CPI report is set to take center stage, with economists expecting a 3.0% year-over-year increase in headline CPI and a 1.9% rise in Trimmed-Mean CPI.