What are the main events for today?

EUROPEAN SESSION

In the European session, the only highlight is the German IFO survey which is expected to remain unchanged at 89.9. The IFO is generally correlated with the German Composite PMI, so we could get lower than expected figures. The data won't change anything for the ECB though, so the market reaction will likely be muted.

The risk sentiment has improved a bit as the expectations of a US strike on Iran over the weekend proved to be wrong. Nevertheless, markets will likely tread carefully as uncertainty remains ahead of the FOMC decision on Wednesday.

AMERICAN SESSION

In the American session, we don't have much on the agenda other than a couple of low-tier releases like the Chicago National Activity index and the Dallas Fed Manufacturing Index. None of the data will change anything for the Fed, so the market reaction will be muted.

Keep in mind that top officials from Saudi Arabia, Turkey and Pakistan are to meet Iran's leaders in Tehran today in their ‌first high-level contact since Saudi Arabia was drawn into war. Reuters sources say the meeting aims to discuss regional coordination amid escalating Houthi attacks and US-Iran tensions.