Market movers today
In the euro area, we are due to get the final HICP figures for September. We do not expect any changes from the preliminary release with regard to headline and core inflation, which reported a decline to 1.1% y/y. However, it will be interesting to see which components caused the fall in service price inflation and whether they point towards any sustained upwards or downwards trend in core inflation, which will be important for ECB policy normalisation going forward.
In the UK, we are due to get the CPI inflation print for September but the release should not alter the Bank of England's members' views on the economy significantly and hence we still expect a 25bp Bank Rate hike next month.
Bank of England Governor Mark Carney, Deputy Governor Sir David Ramsden and MPC member Silvana Tenreyro are due to testify before the UK's Treasury today. We will look for any hints on whether they have changed their mind on a November hike.
In the US, we expect that the relatively muted growth in industrial production continued in September although the recent hurricanes increase uncertainty around the release.
We will also have the ECB's Vitor Constancio speaking at a conference in Lisbon and German ZEW expectations for October are due to be released.
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