euro area inflation for October

The main focus this morning will be the flash estimate of euro area inflation for October, providing an initial area-wide read of whether disinflationary pressures are continuing to mount. In the afternoon, attention will shift to the US release of income, spending and consumption deflator data for September.

In the UK, the main release will be the Financial Policy Committees review of the UK bank leverage ratio, following the consultation earlier this year. Of key interest will be the extent to which UK bank rules are becoming super-equivalent to prevailing EU rules.

UK consumer confidence weakened this month as Britons outlook for the economy deteriorated. The research group’s household sentiment fell to minus 2 from minus 1 in September. A measure of consumers’ expectations for the economy over the next 12 months dropped 2 points to 2, the lowest since February. UK economic growth cooled in the third quarter and threats to the recovery from the euro-area slump have mounted since then. With a national election due in May, Prime Minister David Cameron is counting on the recovery to lift consumers’ mood even as sluggish wage growth persists.
MORNING MARKET RATES:

GBPEUR 1.2728
GBPUSD 1.5977
EURUSD 1.2551
GBPSEK 11.755
GBPAED 5.8672
GBPAUD 1.8143
EURGBP 0.7855
GBPJPY 178.34
GBPTHB 51.999