USD
U.S. consumer prices recorded their biggest drop in eight months in September
as the cost of gasoline fell, but a steady pick-up in other  price
pressures should calm fears that a dis inflationary trend was reasserting
itself.

Consumer Price Index fell 0.2 percent last month after slipping 0.1 percent in
August. In the 12 months through September, the CPI was unchanged for the first
time in four months after rising 0.2 percent in August. Last month gasoline

USD
U.S. consumer prices recorded their biggest drop in eight months in September
as the cost of gasoline fell, but a steady pick-up in other  price
pressures should calm fears that a dis inflationary trend was reasserting
itself.

Consumer Price Index fell 0.2 percent last month after slipping 0.1 percent in
August. In the 12 months through September, the CPI was unchanged for the first
time in four months after rising 0.2 percent in August. Last month gasoline
prices fell 9.0 percent  the biggest drop since January after declining
4.1 percent in August. Food prices increased 0.4 percent, the largest increase
since May 2014.

The number of Americans filing new applications for unemployment benefits fell
back to a 42-year low last week, suggesting the labor market remained strong
despite an abrupt slowdown in job growth in the past two months. Initial claims
for state unemployment benefits fell 7,000 to a seasonally adjusted 255,000 for
the week ended Oct. 10.Claims were last at this level in July, which was the lowest
since November 1973.

We also had poor manufacturing figures in the US with  the Empire State
manufacturing index, which measures conditions in the New York area, stayed in
deep negative territory for the third month in a row  the Philadelphia
Fed’s manufacturing index also remained in negative territory for the second
straight month.

U.S. manufacturing has been struggling since last fall as the strong dollar has
made products less competitive in the global market. While effects of the
strong dollar in 2014 is still weighing on the sector, the dollar has risen
sharply against several currencies since August due to concerns about the
health of emerging markets such as China.

Key Announcements
13:30 – EUR: Consumer Price Index (YoY) expected to fall remain unchanged
at -0.1%