Headline: UK CPI Takes Center Stage as Markets Weigh BoE Cut; Fed Minutes and Nvidia Earnings Ahead
The European trading day opens with UK inflation in sharp focus, setting the tone for currencies and rates. With investors already leaning toward a December rate cut from the Bank of England, today’s data could either seal the deal or force a rethink. Later, attention shifts to the Federal Reserve’s meeting minutes and a closely watched earnings update from Nvidia.
In the UK, headline CPI is expected to cool to 3.6% year over year from 3.8%, with core inflation seen edging down to 3.4% from 3.5%. Governor Andrew Bailey has tied the December decision closely to inflation progress, making this release pivotal. Markets currently price roughly an 80% chance of a BoE cut following softer labor data; however, a hotter-than-expected print could revive sterling, lift gilt yields, and push traders toward a more hawkish stance.
Across the euro area, final Eurozone CPI figures are due but are unlikely to shift the European Central Bank’s policy outlook. In the US session, the FOMC minutes arrive three weeks after the meeting, limiting their market impact. They may still add nuance around inflation risks and the path for policy after Chair Jerome Powell signaled that a December cut is far from assured. Fed speakers on the docket include Miran (10:00 ET), Barkin (12:45 ET), and Williams (14:00 ET). After the closing bell, Nvidia reports Q3 results—an update that could influence broader risk sentiment given the chipmaker’s central role in AI-driven demand and the tech-led equity rally.
Key Points: – UK CPI expected at 3.6% YoY (vs 3.8% prior); core CPI seen at 3.4% (vs 3.5% prior) – Markets price about an 80% probability of a December BoE rate cut after soft UK employment data – Upside inflation surprise could reduce cut odds, boost sterling, and raise gilt yields – Final Eurozone CPI is unlikely to alter the ECB policy outlook – FOMC minutes due later; limited market impact expected given the lagged release – Fed speakers: Miran (10:00 ET), Barkin (12:45 ET), Williams (14:00 ET); Nvidia Q3 earnings after the close
Last updated on November 19th, 2025 at 05:22 am
