The just out UK CPI data has surprised the markets and led the Pound lower against its peers. Data revealed that consumer prices fell again into negative territory for September, dragged down by falling petrol and diesel prices. Tomorrow, Britain’s labour market report will likely shed further light on the nation’s macroeconomic outlook.In Europe, German inflation remained flat as previously estimated for September and in line with market forecasts. The only other major macro pointer today will be the ZEW survey which will be closely watched for clues to the health of Euro zone’s biggest economy. In the US, investors will eye the release of NFIB’s optimism index for small firms.
In a slow start to economic releases this week, it will be interesting to see whether the US Dollar faces further downside pressure against its key peers today. The minutes of the FOMC monetary policy meeting, published last week, has not helped to ease the uncertainty surrounding the probable timing of an interest rate rise in the US.In the upcoming days, traders will eye September retail sales and CPI data in the US that could shed some more light on the state of the US economy and provide additional guidance on the US Fed’s next move. In the UK, CPI data due tomorrow could confirm BoE’s concerns about the nation’s inflation outlook that were expressed in the minutes of its October policy meeting. This week, markets will also refocus its attention on weaker inflationary pressures in the Euro zone.
The just released data showed that Britain’s construction output plunged in August, with the sector recording its largest slowdown since December 2012. Additionally, deficit in UK‘s goods trade expanded more than what markets had projected for August, given the weaker demand in the global economy.In Europe, the French industrial sector recorded its strongest output growth in more than two years for August. However, Euro zone's third-largest economy experienced a more than predicted drop in industrial productivity for August. Across the Atlantic, investors will eye speeches by key Fed officials later today to gauge any change in their stance with regards to Fed’s rate decision.