Developed macro
1. Germany denies markets’ hopes on the possibility of rapid resolution of the European debt crisis
2. Expectations are for relatively resilient German ZEW business confidence index in October
3. UK CPI inflation to edge higher in September largely due to substantial hikes in utilities prices
Interest rate strategy
1. Market to remain highly sensitive to EU comments; yields likely to be range bound near-term
2. Spanish and Greek T-bill auctions on agenda
3. ECB carries out regular 7-day refinancing and deposit operations
FX strategy
1. EUR is wobbling as politicians try to manage expectations. Economic data may not help today either
2. USD benefits from Eurozone doubts but also data that has been fractionally worse than expected.
3. UK CPI carries little policy relevance given QE2 has already been announced. More interest in MPC and retail sales later this week.
Emerging markets
1. Event risk this week put trading cautious; Asian equities and currencies to fall
2. China Q3 GDP to slow only moderately, to 9.2% YoY; September production to remain strong at 13.8% YoY
3. Russia: September production and retail sales to confirm strong momentum
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http://www.easyforexnews.net/wp-content/uploads/2011/10/WMT_2011-10-18.pdf
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