Main Dish Reserved for European CPI numbers
The main dish, however, is reserved for European CPI numbers on Thursday and Friday. The PCE deflator is due in the US at the end of the week. Given the backloaded nature of the calendar we expect a slow, technical start of the week that gives the dollar a slight edge over peers on the FX market. Yields could consolidate around current levels. They already powered through to new cycle highs in the US, both nominal and real. We’re keen to see whether September CPI numbers will do the trick for Germany. The 10-y real yield is nearing the topside of a (yield) bullish triangle.
Source: actionforex.com
