In the data calendar focus will mainly be on a number of US data for October. Retail sales are expected to have been weak partly due to the negative impact from the government shutdown. Headline CPI inflation is expected to have stayed low as core inflation remains subdued and energy prices continued to decline.
In the US minutes from the October Fed meeting will be released tonight. Besides timing of Fed tapering, the minutes could give some important insight into the support within the Fed for possible strengthening of the forward guidance for interest rates. Particularly, in our view there is not yet a clear consensus on lowering the unemployment threshold for a rate hike and this might be a slight disappointment for financial markets.
Bank of Englands minutes from the November 6-7 meeting will most likely show that the committee voted unanimously to keep monetary policy on hold and will probably contain some discussions on the strength of the UK recovery. This should, however, not have much market effect as the updated macroeconomic views were released in the Inflation Report last week.
To Read the Entire Report Please Click on the pdf File Below.