US CPI to test 90% odds of Dec Fed hike - ING

A subdued US CPI release this week (Wed) could test the 90% probability of Dec Fed rate hike priced into markets, according to analysts at ING.

Key Quotes

“We'll also get PPI data (Tue), as well as retail sales (Wed) - the latter expected to come in much flatter on the month after last month's strong hurricane-distorted figures. While the 'Big 4' central bankers will also see Yellen speaking this week, the greater focus will be on US politics, be it US tax reform or trade.”

“This week should see the House trying to pass its own version of the reform, though the more tricky Senate vote may not be seen until December. On trade, this week will see the fifth round of NAFTA talks taking place, with early signs that the US and Mexico are starting to lose patience with each other. An equity correction may be coming – but it is not obvious. DXY breaking under 94.25 would worry the bulls.”