US CPI data for October is due out at 14:30. In line with consensus, we estimate the core CPI index increased 0.2% m/m in October (2.2% y/y), while we estimate that the headline index increased by 0.3% m/m (1.6% y/y). In our view, headline inflation is likely to move higher in coming months due to higher energy prices.
In the US, today will also see the release of the Philly Fed business survey, as well as building permits and housing starts for October.
Fed Chair Yellen is due to testify before the congressional Joint Economic Committee today at 16:00 CET. Market participants will be looking for any guidance on a potential rate hike in December, which is by now nearly fully priced in. However, comments on the recent pick-up in inflation, as well as any remarks on the monetary policy implications of Trump's proposed fiscal policies, will also be closely followed.
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