Market movers today
In the euro area, the main event will be the release of preliminary German consumer prices for September. We expect HICP inflation to stay unchanged at 0.8% y/y but for the euro area as a whole we still expect the inflation data, released tomorrow, to show that inflation in September eased to a new cycle low of 0.3% y/y on the back of lower energy prices.
In the US focus will also be on inflation with the release this afternoon of the PCE-deflator - Fed's preferred inflation measure. We expect inflation to ease to 1.4% y/y in August from 1.6% y/y, underscoring that inflationary pressure has again started to ease and that inflation remains below Fed's 2% target. Personal consumption is expected to have increased a solid 0.5% m/m in August despite relatively subdued income growth.
We have a very eventful week ahead of us where focus will be on the ECB meeting on Thursday and ISM-manufacturing and the September labour market report in the US on Friday.
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