Morning Juice – Europe Session Prep

This week, the Federal Reserve is expected to cut interest rates after more than a year of maintaining borrowing costs at a two-decade high.

On September 25, the Chinese central bank said that it will provide one-year liquidity to local lenders, a third delay in the wake of a significant reorganisation of its policy toolkit.

Iran-supported Fears of a full-scale conflict grew after Hezbollah claimed that Israel was behind an attack that left about 3,000 people wounded and many dead throughout Lebanon.

The Bank of Japan has signalled interest rate hikes recently, but investors who were burnt in the aftermath of the July board meeting seem unwilling to take it. The swaps market is only pricing in a one in three chance of a boost this year.

Whether the Federal Reserve lowers interest rates by 25 or 50 basis points, according to Jamie Dimon, CEO of JPMorgan, the decision “is not going to be earth-shattering.”

Following a two-day surge, oil prices steadied as traders evaluated the anticipated trajectory of the Federal Reserve’s rate path, signs of increased US stockpiles, and growing Middle East tensions.

02:00 ET
UK CPI YoY
Median Forecast 2.2% | Prior 2.2% | Range 2.4%/2.0%

UK Services CPI YoY
Median Forecast 5.6% | Prior 5.2% | Range 5.7%/5.4%

UK Core CPI YoY
Median Forecast 3.6% | Prior 3.3% | Range 3.8%/3.3%