Today’s focus is on the ECB meeting, where we expect the ECB to deliver another 25bp rate cut, bringing the deposit rate to 3.25%. Market expectations are supported by recent weaker-than-anticipated growth indicators, as well as a decline in inflation, notes Danske Bank economist Sofie Pedersen.
Focus turns to ECB
“We expect the ECB to stick to the ‘meeting-by-meeting’ and ‘data-dependent’ approach it has been following in recent quarters. Ahead of the meeting, we receive the final HICP inflation data, which will allow us to see how “The LIMI measure of domestic inflation performed in September, which is an important input for the ECB.”
“September US retail sales and industrial production data, as well as weekly jobless claims, will be released in the afternoon. Retail sales will provide markets with the latest concrete evidence of consumer strength “Initial jobless claims for the week ending October 12 will include for the first time the impact of Hurricane Milton, which likely distorted the data upwards, especially in Florida.”
“Overnight we will get September inflation in Japan. The figure likely fell sharply from 2.8% in August, as an early release from Tokyo also indicated. The BoJ’s preferred inflation measure stood at 2.8% in August and should remain unchanged. above the 2% target Underlying price pressures have largely aligned with 2% inflation recently and, taking into account the yen’s decline in October, we still see an opening for another BoJ hike in December or. January after the dust settles following the October 27 general election.”
Source: Fx Street
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