Major currencies are little changed to start the day, after the dollar put on a more mixed showing in trading yesterday. The pound will remain a focus point with UK inflation set to pile on the misery for the Truss government. Annual inflation in September is estimated to tick back up into double-digits with monyhly inflation estimated to have increased by 0.4%.
All of that will just keep the pressure on the BOE to tighten further in two weeks’ time, with the central bank at least able to take in some comfort now that Hunt has ripped up Kwarteng’s mini-budget.
In the bigger picture, dollar sentiment remains key but as we await major central bank decisions, there seems to be more chop in the works rather than a straightforward trending move this week.
The only real spot with any semblance of a trend is in equities, as the relief rally continues – for now at least.
0600 GMT – UK September CPI figures
0900 GMT – Eurozone September final CPI figures
1100 GMT – US MBA mortgage applications w.e. 14 October
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.