FXStreet (Delhi) – Philip Marey, Senior US Strategist at Rabobank, suggests that in the US, the impact of the economic growth slowdown in China and other emerging economies will be reflected in the industrial production figure for September.
Key Quotes
“Industrial production fell during the first five months of the year due to the appreciation of the dollar and the decline in the oil price. In June, industrial production remained unchanged and July saw a short-lived rebound that came to an end in August when output fell by 0.4%. The consensus expectation is a further decline by 0.2%.”
“Meanwhile, the University of Michigan survey for October will show how US consumer sentiment is affected by these developments. Earlier this week we saw a weak retail sales report for September that reflected the deterioration in consumer sentiment in the same month. The consensus expectation is a modest rebound in sentiment in October.”
“Note that the inflation expectations in the survey are of special interest to the Fed. After all, as long as inflation expectations remain anchored, the current spell of low inflation is likely to be a transitory phenomenon.”
(Market News Provided by FXstreet)