The US PCE report is due at the bottom of the hour and with the deflator low in yesterday’s GDP report, there’s scope for a downward surprise. That said, core PCE in the GDP was inline and that’s where the market is likely to be watching. It’s forecast to rise 0.5%.
At the same time, the Q3 employment cost index is due up and that’s a report Powell specifically highlighted as something the Fed is watching. There’s no consensus.
Finally, we’ll get Canadian August GDP, which is expected to be flat.
Later — at 10 am ET — we get the final UMich October sentiment data. Watch for revisions to inflation expectations. In addition, the US pending home sales report is exepcted to fall 5.0% as higher rates bite.
For more, see the economic calendar.
