An anticipated acceleration in U.S. September consumer inflation, due on Wednesday, is unlikely to prompt the Fed to raise interest rates in October, says Macquarie Group's Thierry Wizman in a note.
"We do not believe that the report will sway the Fed into hiking later this month," the global FX and rates strategist says. Many Fed officials have already expressed a predilection for hiking at every other meeting, rather than consecutively, he says.
Analysts in The Wall Street Journal's poll forecast the headline year-over-year CPI to rise to 3.6% from 3.4% in August. Money markets currently price in a 19% probability of a Fed rate hike on Oct. 28, according to LSEG.