Economic calendar: Big day for EUR!

• European stock market set for higher opening

• ECB rate decision at the top of agenda

• Italian PM expected to resign

Futures markets point to a slightly higher opening of the European cash trading session today. DAX futures trade around 20-30 points above yesterday's cash closing levels. In spite of USD weakness, precious metals and energy commodities pull back slightly. EUR is the best performing major currency at press time. Cryptocurrencies pull back after Tesla revealed it sold 75% of its Bitcoin holdings.

Today is a big day for EUR. As we have mentioned earlier, common currency is the best performing G10 currency today. Media reports saying that gas flows via Nord Stream 1 pipeline were resumed provided a boost for EUR. There are 2 more potential volatility events for euro today. Firstly, Mario Draghi is expected to definitely resign from the Prime Minister post amid failure to gather enough support for his government. Draghi is expected to make an announcement at 8:00 am BST. However, a key event of the day is the ECB rate decision at 1:15 pm BST (press conference at 1:45 pm BST). Economists are divided on whether ECB will deliver a 25 or 50 basis point rate hike so there is a scope for surprise. Moreover, ECB is likely to provide some details on how it attempts to prevent fragmentation of eurozone bond markets.

8:00 am BST - Italian Prime Minister expected to announce resignation

9:00 am BST - Poland, retail sales for June. Expected: 21.5% YoY. Previous: 23.6% YoY

12:00 pm BST - CBRT rate decision

1:15 pm BST - ECB rate decision

1:30 pm BST - US, Philly Fed index for July. Expected: -0.1. Previous: -3.3

1:30 pm BST - US, jobless claims. Expected: 240k. Previous: 244k

Wall Street earnings releases

• AT&T (T.US) - before market open

• Alaska Air Group (ALK.US) - before market open

• American Airlines (AAL.US) - before market open

• Dow (DOW.US) - before market open

• Philip Morris (PM.US) - before market open

• Snap (SNAP.US) - after market close

• Travelers (TRV.US) - before market open