Focus On U.S. CPI
Friday’s stronger-than-expected U.S. nonfarm payrolls data did little to deter bets on a December rate cut this week.
Elsewhere, a major regime change in Syria will entail for geopolitics in the Middle East, after rebel forces ousted President Bashar al-Assad.
This week, the focus will also be on the consumer price index, due on Wednesday. Sticky inflation would give the Federal Reserve less impetus to cut interest rates aggressively. The Fed is expected to cut be 25bp next week, but to slow its pace of rate cuts in 2025 given sticky inflation and a strong labor market.
On Thursday, the European Central Bank is anticipated to cut rates by another 25bp amid meager eurozone growth.
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