Even though the European (EU) economic docket was absent, Klas Knot, an European Central Bank (ECB) Governing Council Member, had crossed the wires. Knot commented the ECB is not done with interest rate hikes, as core inflation remains at 6%, three times the ECB’s 2% target.

“The only question is whether you still need to take a further step up by half a percentage point, like the last few times we raised rates, or can you already scale back to smaller increments of a quarter of a percentage point,” he said.

When asked about cutting rates towards the year’s end, Knot described such a scenario as “almost impossible.”

Meanwhile, Worldwide Interest Rate Probabilities (WIRP) show odds for a 25 bps rate hike by the European Central Bank at 90%. Following that, another 25 bps rate increase is expected, and no movement for Q4.