Overnight saw risk-on moves in the market, with most Asian equity indices rallying, their currencies strengthening against USD and crude oil inching higher (Brent was at c.USD51.80/bbl)
Elsewhere, Barclays Research note “…the inflation outlook remains bleak, in particular at the core level. We therefore retain our view that, despite risks to headline inflation being skewed to the upside as the upward oil price trend continues, the underlying trend remains weak…”
Barclays Research forecast core US CPI to have risen 0.2% m/m and 2.3% y/y, in line with the market consensus and representing a solid increase in core CPI, we watch for the print at 13.30 this afternoon
What to Watch for Today
Inflation data is in focus today, starting at 09.30 we look to UK CPI (Barclays Research: 0.1% m/m, Consensus: 0.1% m/m) and RPI (Barclays Research: 0.1% m/m, Consensus: 0.1% m/m) for September. This afternoon, at 13.30, the attention turns to the US CPI release for September (Barclays Research: 0.4% m/m, Consensus: 0.3% m/m)
Currency rates today show GBPUSD at 1.2243 and GBPEUR at 1.1112.