EUR

Today’s economic calendar turns its attention to Europe as a string of data and the key ECB monetary policy statement will be released.

Rising inflation has been felt globally, and recently central banks have been forced to think about altering their current monetary policy stances.

This being said, we expect no substantial announcements out of the ECB today. Interest rates and asset purchases are set to remain the same and Lagarde will likely deem the rising inflation as transitory once again. It is expected that a decision on its bond purchase program will be made in the December meeting.

Unlike the US or UK, rising inflation across the bloc has not been coupled with economic growth. With a UK and US interest rate rise already priced in, the attention now turns to the ECB. However, the ECB don’t seem to allow pressure by peers to force an alteration of policy sooner than they have planned.

Maybe erring on the side of caution the ECB are reluctant to make any rash decisions after the 2011 increase of the bloc’s debt crisis. Lagarde will have her work cut out to convince investors that the ECB are making the right decision this time.

GBP

Yesterday, Rishi Sunak announced his budget, outlining his plan for the next few years. A rise in the national living wage and increased spending across health care and transport were among the key points announced.

He also noted that inflation is likely to average over 4% over next year and the economy was set to hit pre-covid levels by year end.

Key announcements

12:45 – ECB monetary policy statement
13:30 – ECB press conference
13:30 – US advanced GDP q/q