Markets Await the BOJ and the Fed

Daily Update - 31st October 2017

Yesterday’s Focus

• EUR Retail Sales, Industrial Confidence, Economic Sentiment Indicator, Business Climate, Consumer Confidence, Services Sentiment, Consumer Price Index
• USD Core Personal Consumption

Yesterday’s Explained

In the data front, the biggest surprise was a miss in German's October preliminary inflation, down by 0.1% monthly basis and up by 1.6% YoY when EU harmonized. The country's retail sales surged yearly basis but grew by less than expected in the month. Steady growth, but soft inflation supports ECB's stance of maintaining QE alive, negative for the common currency. US data, on the other hand, failed to impress as core PCE inflation resulted unchanged in September from August readings, although personal income and spending grew, the second at a faster-than-expected pace.

Personal Spending and a Core Consumer Price Expenditures came out higher than expected. Personal spending rose by 1.0% compared to analysts expectations of 0.8% while PCE was released in line with expectations. Last Friday’s strong Gross Domestic Product numbers underscored the strength of the U.S economy.

Today’s Focus

• BOJ Interest Rate Decision, Outlook Report, Monetary Policy, Press Conference
• CAD Gross Domestic Product
• EUR Unemployment, Consumer Price Index, Gross Domestic Product

Today’s Market

On Tuesday, we will look at Interest Rate Decision from BOJ along with releasing of monetary policy statement report while holding BOJ press conference which surely move Japanese market and globally followed by GDP figures from Canada and releases regarding the Euro Zone economy, Q3 GDP, expected to show that the economy grew by 0.5% in the three months to September, below previous 0.6%, unemployment rate and CPI report, there could be seen some movement in Euro market.