– BoJ expanded asset purchases by JPY11trn
– RBI kept repo rate unchanged, cut cash reserve ratio by 25bps
– South Korea’s current-account surplus widened to $6.07bn
– US markets remain closed
– Italy to sell 5yr and 10yr bonds today
What to watch for today
EUR: Spanish GDP. We expect Q3 GDP data in Spain to show a 0.4% qoq contraction, in line with the consensus expectation. A surprise to the downside will probably reinforce the likelihood of Spain accessing a formal ESM application before year-end. We believe this would be preceded by a period of rising euro stress, with negative implications for EURUSD.
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Credit Suisse