Europe Summary and Highlights 16 Sep
FX quiet and flatlined into the key FOMC meeting
UK CPI as expected, maintains recent broad story, sterling little impacted into the MPC
Europe
Limited action with FX little moved across the board after yesterday’s position adjustments, as you would expect into such a key FOMC meeting.
Hike largely priced in from the FOMC but pivotal will be the projections, commentary and tone. The market does have a lot priced in now so the bar is high.
Oil inching off $1, equities a little firmer, and US10s just off the 5% mark at 10s in the run in.
Main news in the morning comes from UK CPI, headline up to 3.1% very much as expected, with the core rate holding 2.6%. PPI data firmer on output prices (though core steady) and input prices up strongly to 6.1%y/y. Sterling little moved by data again that, following the softer labour data yesterday, maintains the broad recent UK themes.