The forex markets are generally steady as recent consolidations continued. ECB said that EUR 1.7b of covered bonds were bought last week as the new security purchase program began. Some analysts argued that it's just like a drop in the ocean comparing to the EUR 2T balance sheet. ECB vice president Vitor Constancio said earlier this month that there were around EUR 600b of covered bonds and EUR 400b of ABS eligible for EB purchase. Based on last week's size, there is no way the total size could get near to the EUR 600b mark. EUR/USD is struggling around 1.27 level for the moment and maintain the near term bearish outlook.
In UK, BoE deputy governor Minouche Shafik said that there was "no significant evidence" of price pressures and slack remained in the job market. She noted the central bank would need to see "see more of the data pointing in the same direction in terms of price pressures - particularly in terms of wages and unit labor costs" before hiking interest rates.
On the data front, Japan retail sales rose 2.3% yoy in September versus expectation of 1.0% yoy. German import price index will be released in European session. But main focus will be on US data today. Durable goods are expected to rise 0.3% in September with ex-transport orders up 0.5%. S&P Case-Shiller 20 cities house price is expected to rise 5.7% yoy in August. Conference board consumer confidence is expected to rise to 87 in October.