The Sentix Economic Index for the eurozone improved marginally to -18.6 in October. The Economic Expectations component of that delivered an increase of 6.8 points. These are improved numbers but still well into negative territory. So the euro did stabilise but not strengthen particularly. German factory orders also improved, but this morning’s German Industrial Production Data was much worse than expected.

As was widely expected, the US Federal Reserve left their base rate on hold at 5.5% when they met yesterday. The statement that accompanied the decision still talked about holding a tightening bias as far as the US money supply is concerned but there is a growing chorus of voices calling for them to start easing the pressure on consumers sooner rather than later.

In the first estimate of US economic growth in the third quarter of the year, the data was significantly stronger than expected. The 4.9% quarterly growth rate is nearly half a percent stronger than the markets had forecast and more than double the growth seen in Q2.

The fact that both New Zealand and Hong Kong having a national holiday today meant the overnight markets were fairly quiet. In fact, the rest of Monday is likely to be very quiet due to the lack of Tier 1 economic data due for release. Geopolitically speaking, the world is still on tenterhooks as Israel and Hamas mull their next moves.

Sterling is a little directionless at the moment. We don't have any tier-one UK data today but we do have a slew of speakers from the Bank of England. So sterling is likely to be a little unpredictable. However, most traders will be hanging fire in anticipation of tomorrow morning's unemployment data.

Monday was a very quiet one from a data perspective. Hence, the markets bided their time watching the dreadful events in the Israel – Palestine conflict. The pound did pick up some strength on most fronts overnight after the British Retail Consortium published a 2.8% rise in retail sales activity in September compared to the same month in 2022.