Following a week packed with central bank decisions, the torch will be now passed to the RBNZ. When they last met, policymakers of this Bank decided to cut interest rates by 50bps and kept the door open for more reductions. However, we don’t expect them to deliver one this week. As for the data, Eurozone’s preliminary PMIs for September and the US core PCE index for August are due to be released.
Monday is a PMI day! During the European morning, we get the preliminary prints for September from several European nations and the Eurozone as a whole. The bloc’s manufacturing index is expected to have risen somewhat, but to have stayed within the contractionary territory. Specifically, it is expected to have increased to 47.3 from 47.0. The services one is expected to have slid to 53.3 from 53.5. Something like that would keep the composite PMI unchanged at 51.9.
At its previous meeting, the ECB cut its deposit rate by 10bps and decided to restart its QE program, with President Draghi adding that the Governing Council “continues to...
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