Economic calendar: US PCE inflation, Lagarde speech

• European indices set to open slightly higher

• US core PCE data due at 1:30 pm GMT

• Lagarde set to speak, American Express and Chevron report earnings

Futures markets point to a slightly higher opening of the European cash session today. DAX futures currently trade around 50 points above yesterday's cash close. USD is one of the best performing major currencies this morning and it is putting some pressure on precious metal prices. Industrial metals trade mixed while energy commodities trade mostly higher.

US data pack for December at 1:30 pm GMT, including PCE data, is a key macro release of the day. This is a final piece of top-tier data ahead of FOMC decision next week so it will surely be watched closely by market participants. Elevated volatility on USD around release time should be expected. Apart from US data, traders will also be offered speech from ECB President Lagarde (10:30 am GMT) as well as earnings reports from American Express and Chevron.

8:00 am GMT - Spain, GDP report for Q4 2022. Expected: 0.1% QoQ. Previous: 0.1% QoQ

1:30 pm GMT - US, data pack for December.

• Core PCE inflation. Expected: 4.4% YoY. Previous: 4.7% YoY

• Personal income. Expected: 0.2% MoM. Previous: 0.4% MoM

• Personal spending. Expected: -0.1% MoM. Previous: 0.1% MoM

3:00 pm GMT - US, pending home sales for December. Expected: -1.0% MoM. Previous: -4.0% MoM

3:00 pm GMT - US, University of Michigan consumer sentiment for January (final). First release: 64.6

Central bankers' speeches

• 10:30 am GMT - ECB President Lagarde

Top Wall Street earnings releases

• American Express (AXP.US) - before market open

• Chevron (CVX.US) - before market open