• Equities keep more tentative so far in the new day
• Eurozone August industrial production +1.8% vs +1.7% m/m expected
• Germany October ZEW survey current conditions -86.9 vs -84.5 expected
• USD/JPY wrestles with near-term support after nearing 150.00 yesterday
• IEA cuts 2024 oil demand growth forecast amid China drag
• China economy set to miss growth target in 2024 – poll
• Chinese stocks continue down the bumpy stretch of road in the new week
• European equities mostly a touch higher to start the day
• Spain September final CPI +1.5% vs +1.5% y/y prelim
• France September final CPI +1.1% vs +1.2% y/y prelim
• What are the main events for today?
• Eurostoxx futures +0.1% in early European trading
• UK August ILO unemployment rate 4.0% vs 4.1% expected
• Germany September wholesale price index -0.3% vs -0.8% m/m prior
• FX option expiries for 15 October 10am New York cut
• UK labour market report on the agenda in the session ahead
• BOJ seen keeping interest rates unchanged through year-end – poll
• China banks reportedly set to trim rates on ¥300 trillion of deposits as soon as this week
• Dollar keeps steadier as the week looks to pick up
• Japan PM says aims to for a supplementary budget higher than last years amount

The main event in the European session today was the release of the UK labour market report. The data beat expectations and after some tentative price action, led to a rally in the pound.

We also got the German ZEW which came out on the softer side but the expectations index improved. That didn’t help the euro though as it continues to trade tentatively into the ECB decision on Thursday.

In the markets, the most notable mover has been crude oil as it extended the fall triggered by late yesterday’s news of Israel limiting the counterstrike to military targets.

In FX, we continue to see tight ranges although the bullish momentum in the US Dollar looks to be exhausted as the market might need more to price in a more „hawkish“ path for interest rates than the current Fed’s projections.

In the equity space, the S&P 500 and the Nasdaq are consolidating around yesterday’s highs. We haven’t got any bearish catalyst in the meantime, so the current uptrend will likely remain intact.

In the American session, the main event will be the release of the Canadian CPI. The market
is pricing in a 48% probability of a 50 bps cut at the upcoming meeting. Soft data will likely seal the 50 bps cut,
while higher than expected figures might trigger a relief rally in the CAD.

This article was written by Giuseppe Dellamotta at www.forexlive.com.