In UK the labour market report is released and the unemployment rate is expectedto decline further to 5.9% in September from 6.0% in October (ILO data). Wagegrowth is expected to stay very subdued below 1%. We also get the inflation reportfrom Bank of England with new projections for the UK economy.
Euro-area industrial production for September is released and we expect somerebound from the big fall in August (-1.8% m/m), as it was highly influenced by ashift in German holidays in the manufacturing sector. For September we forecast1.0% m/m, reflecting the weak rebound in German industrial production (up 1.4%m/m in September, following a fall of 3.1% m/m in August).
Finally, Fed member Plosser (hawk, voter) talks this morning at 09:00 CET, whileFed member Kocherlakota (dove, voter) talks tonight at 18.00 CET. Kocherlakotadissented at the latest Fed meeting, as he believes the Fed should commit to keepingrates unchanged until the one-to-two-year outlook for inflation is at 2%. He alsowants the Fed to continue asset purchases. He is very alone, though, in his very dovishstance and as such his comments matter less.
Read the full report: FX Daily