- How have interest rates expectations changed after this week's events?
- ECB's Wunsch: We are in a good place
- Fed's Williams: Uncertainty and change will be with us for the foreseeable future
- Japan will elect a new prime minister tomorrow, what to know?
- Eurozone August PPI -0.3% vs -0.1% m/m expected
- UK September final services PMI 50.8 vs 51.9 prelim
- Italy August retail sales -0.1% vs +0.0% expected
- Eurozone September final services PMI 51.3 vs 51.4 prelim
- What are the main events for today?
- FX option expiries for 3 October 10am New York cut
- BOJ governor Ueda: The risk of us being behind the curve on inflation is not that big
- Heads up: Fedspeak coming up in the day ahead
- No non-farm payrolls makes for a less spicy end to the week
It was a very lacklustre session with limited newsflow and low tier data releases. We got the final PMIs for the largest Eurozone economies and the UK and despite some lower revisions, the market didn't really move on that. The market moves more on new information i.e. on the Flash PMIs.
We got a couple of central bank speakers but they didn't offer anything new in terms of monetary policy or economic outlook. BoJ Governor Ueda repeated the same old script which can be summed up with the usual line "to raise rates if economy, prices, move in line with forecasts".
Fed's Williams didn't comment on monetary policy or economic outlook, while ECB's Wunsch just reaffirmed that the ECB is in a good place with the current policy stance, which is what they've been repeating for several weeks.
In the markets it's been kind of the same boring mood with tight ranges as traders are left without key US data like the NFP report as the US government shutdown continues. We have only the private sector data for now with the ISM Services PMI coming up at 10:00 am ET.
The US ISM Services PMI is expected at 51.7 vs 52.0 prior. The market will likely focus on the employment and price indices in the report. The combination of higher employment and lower price indices in the ISM Manufacturing PMI two days ago coincided with a rally in US stock markets.
