A couple of light releases to move things along
All that before we get to the US CPI data later in the day. With inflation being a key factor in the market at the moment, that will be one to watch.
For now, the dollar is keeping more mixed and mildly softer on the balance of things, with USD/JPY retreating slightly from 113.60 to 113.45. This comes as long-end yields slid quite a bit in trading yesterday but the trend remains intact.
As such, just be wary that we could still see further weakness in bonds and the yen, with USD/JPY eyeing 114.00 next and CAD/JPY continuing to have a stellar performance in recent weeks, contesting the highs for the year @ 91.17-19.
There will be a couple of releases to move things along in Europe but nothing to really impact the ebb and flow of things before the US CPI data will come along to provide the next catalyst for a key market move perhaps.
0600 GMT - Germany September final CPI figures
The preliminary release can be found here. The final report should just reaffirm the surge in annual inflation pressures in Germany last month, though base effects are still a key consideration amid the VAT reduction in 2H 2020 and energy prices.
0600 GMT - UK August monthly GDP data
Prior release can be found here. UK economic output is estimated to improve decently in August but overall keeping rather tepid towards the latter stages of Q3. With supply chain disruptions and labour shortages still persisting, that continues to weigh on the outlook and are also issues that are persisting to begin Q4.
0900 GMT - Eurozone August industrial production data
Prior release can be found here. Factory output in the euro area is estimated to have dropped in August, though this is a bit of a lagging data point at this stage.
1100 GMT - US MBA mortgage applications w.e. 8 October
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week.
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.
