More waves in the storm of Fedspeak
- Three Fed speakers - Dudley, Bullard and Yellen. We know that they are
likely to stay on message about rate hikes this year, essentially
denying that the September FOMC statement ever happened.
- Data on both sides of the Atlantic continues to signal that the real
economy is rather indifferent to financial markets - although confidence
data should always be treated with considerable caution. The Chicago PMI
survey is due today, with the slight quirk that it may reflect nominal
more than real issues.
- ECB President Draghi is running out of time if he wants to claim that
deflation is a real and present data in the Euro area, but today's flash
CPI is one excuse that he could use. However, real economic data
continues to be robust (German labour data is due today).
- UK final Q2 GDP is due. We all know this is not really a final, final
number as the UK ONS has a habit of revising, and revising large. The
frequency and scale of revisions is one reason to be nervous about
market reverence for single data releases.