US: All eyes on CPI and Fed speak today – Deutsche Bank

Research Team at Deutsche Bank suggests that a couple of highlights – namely US CPI this afternoon and a speech by Fed Chair Powell this evening will warrant investors’ attention in the US session.

Key Quotes

“For US CPI, the consensus is for another +0.2% mom reading for the core – the 37th successive month with such a forecast – however our US economists do expect a slightly above market +0.3% print, which if so, would round up the annual rate to +2.23%.”

“As for Powell, he’s due to speak after the close at 11pm GMT at a conference on national and global economic issues, and our colleagues think that this will be important since it will allow the Chair to expound on topics and recent events in markets that did not make their way into last week’s sparse FOMC statement. Indeed, the event may preview some issues that will likely turn up in the minutes (released November 29th).”

“Given the broad scope of the event, Powell's and Kaplan's discussion could range anywhere from how recent events such as the soft Q3 capex data or October’s market volatility may have affected the Fed’s economic outlook to longer-run issues such as the ultimate size of the balance sheet or the uncertainty around estimates of the neutral level of interest rates.”