Market movers today
Today, focus will be on the FOMC meeting with the rate announcement due out at 19:00 CET. It is one of the small meetings without a press conference or updated 'dots'. We expect it to maintain the target range at 0.25-0.50%, in line with consensus, due to the presidential election on 8 November. Therefore, the most interesting part is the FOMC statement. In 2015, the Fed more and less preannounced the December hike at the October meeting but, unlike last year, this time the markets have more or less priced in a Fed hike by year-end as much as possible at the current time given that there is still one and half months until the December meeting. Hence, we do not expect any major changes to the FOMC statement at this meeting.
In terms of data releases, the US ADP employment change will also attract some attention prior to the US jobs report on Friday. We continue to receive mixed signals about the labour market, but the ADP employment is estimated to have increased 165,000 in October following the increase of 154,000 in September, indicating that the US labour market remains solid.
In Europe, UK construction PMI and the final releases of European manufacturing PMIs for October are due out.
In Denmark, the Nationalbank is due to release currency reserves data for October.
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