What are the main events for today?

EUROPEAN SESSION

In the European session, we don't have much on the agenda other than a couple of low-tier releases like the French consumer confidence and the Spanish unemployment rate. The data won't change anything for the ECB, so the market reaction will be muted.

The risk sentiment is neutral to bearish at the moment given the near-term risks like the FOMC decision, the US midterm elections and the possibility of renewed US strikes on Iran. Markets will likely continue to lean on the cautious side until we get a clear catalyst changing the current context.

AMERICAN SESSION

In the American session, we get the US durable goods orders and the US consumer confidence report. Again, the data won't change anything for the Fed, so the market reaction will likely be muted. The focus remains on the Middle East as oil prices continue to make multi-month highs, weighing further on growth and inflation concerns.

We have also the Israeli elections today but I'm not sure how a change of leadership would alter the current picture. Many opposition figures support maintaining pressure on Iran. The one having a drastically different view is opposition leader Gadi Eisenkot. Eisenkot said he believes economic pressure is the best way to defeat Iran. He backs strikes on Iran's nuclear program but not a return to all-out war.