Analysts at TD Securities offered a sum up of what happened in the various currencies overnight.
Key Quotes:
“NOK September inflation was in line with our forecast, at 3.4% y/y for headline and 1.9% y/y for core, both a notch above consensus. Recreation & Culture prices continued to gain on a year-on-year basis, as did food prices, while last month’s gains in Clothing & Footwear reversed. Today’s data leaves underlying inflation at 1.75% in 18Q3, slightly above the Norges Bank’s recent forecast of 1.65%.
SEK October’s Prospera inflation expectations survey was released, and showed 1- and 2-year inflation expectations unchanged at 2.0% y/y. 5-year inflation expectations returned to 2.0% y/y as well, after dipping a notch last month.
GBP Monthly GDP was flat in August (mkt: 0.1% m/m) though both June and July’s figures were revised up a notch, leaving the 3-month GDP growth rate at 0.7% (mkt: 0.6%). Underlying details for August show that Manufacturing fell 0.2%, Services were flat, and Construction fell 0.7% m/m. Overall, today’s release falls broadly in line with our view of slowing growth through 18H2, but even if sustained for a few months, this shouldn’t be enough to put the BoE off an eventual May 2019 hike.
USD September PPI was largely in line with expectations at 0.2% m/m, which left PPI inflation slightly lower at 2.6% y/y (market: 2.7%). Core PPI rose by 0.4% for the largest increase since January, which left core producer prices up 2.9% y/y, unchanged from the prior month.”
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