As investors eagerly await key risk events this week, European bourses are modestly firmer, while US equity futures are mixed. The DXY is also firmer, approaching session highs, with the JPY underperforming and USD/JPY rising to just shy of the 148.00 mark. In the bond market, USTs and Bunds are slightly softer ahead of the ECB and US CPI, as well as a 30-year auction following strong performances in previous 3- and 10-year auctions.

Meanwhile, industrial commodities and gold remain subdued, awaiting key risk events. However, there have been some modest upticks in crude oil prices due to the recent Russian drone incursion into Poland, Ukraine, and Lithuania, which has been called an “unprecedented” provocation.

Looking ahead, the market will be closely watching the US CPI (Aug) & Jobless Claims, ECB Policy Announcement & Press Conference, CBRT Announcement, OPEC Monthly Report, Supply from the US, and Earnings from Adobe. These events are likely to have a significant impact on market sentiment and could lead to increased volatility.

Investors should be prepared for potential market movements as central banks take center stage this week. The ECB and US CPI will provide valuable insights into the health of the economy, while the OPEC Monthly Report and US supply data will influence oil prices. With earnings season in full swing, Adobe’s results could also have a significant impact on investor sentiment. As always, it is essential to stay informed and adapt to changing market conditions to ensure successful investing.