Following the FOMC, BoC and BoJ policy gatherings, last week, now the central bank torch is passed to the RBA and the BoE. Both Banks are expected to stand pat, so all the attention is likely to fall on hints and signals with regards to their future course of action. We also get employment data from New Zealand and Canada.
Monday appears to be a relatively light day with the only indicators worth mentioning being Eurozone’s final manufacturing PMI for October, which is expected to confirm its preliminary estimate of 45.7, and the UK construction PMI for the same month, which is forecast to have risen to 44.0 from 43.3. The case for a slight improvement in this index is supported by the manufacturing PMI, released on Friday, which rose to 49.6 from 48.3.
On Tuesday, during the Asian morning, the RBA will decide on monetary policy. At its October gathering, the Bank decided to cut interest rates by 25bps, to a new record low of +0.75%, and reiterated that they will continue to monitor developments, including in the labor market, and ease policy further if needed.
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