Analysts at Rabobank explained that today we have lots of data with UK retail sales, the German IFO survey, and US durable goods orders.
Key quotes:
“We also get the ECB meeting, where the bank is likely to continue to send the message that it is set to continue on its pre-set path ahead, like the super-tanker that it is, even as icebergs are starting to appear all over the horizon.”
“We also have a rate decision in Turkey where the view of Piotr Matys is that given the impressive TRY rally over the past few weeks it would be perfectly reasonable to expect the CBRT to leave rates on hold following the decisive 650bp hike back in September.”
“That said, policy makers may have to seriously consider a measured rate hike of 150bp to 25.50% to send a very strong signal that they remain determined to rein in inflation, which accelerated further to 24.5% y-o-y in September. Apart from increasing central bank’s credibility, a hike would also provide TRY with a thicker layer of insulation against intensifying external headwinds.”
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