Monday will start with manufacturing PMI data for the Eurozone, the U.K., and the U.S. while Tuesday the main highlight will be the RBA monetary policy announcement. That same day, Switzerland will release its inflation data, while in the U.S., markets will focus on the JOLTS job openings and the Congressional elections. New Zealand will also publish employment change q/q and the unemployment rate. Wednesday will bring services PMI data for the Eurozone, the U.K., and the U.S. while the Eurozone will also release its CPI flash estimate y/y and the U.S. will publish the ADP nonfarm employment change. On Thursday, Japan will release its monetary policy meeting minutes, before attention shifts to the BoE monetary policy announcement. Finally, on Friday, Canada will print its employment change and the unemployment rate and the U.S. will publish the average hourly earnings m/m, nonfarm employment change, the unemployment rate, preliminary UoM consumer sentiment and preliminary UoM inflation expectations. Several FOMC members are also expected to deliver remarks throughout the week. In the U.S., the consensus for the ISM manufacturing PMI is 54.5 vs. the prior 54.5, while the ISM services PMI is expected at 54.9, unchanged from the previous reading.This week’s data will be closely monitored for further signs of inflationary pressure stemming from the recent rise in commodity prices, which could translate into higher input costs. Both manufacturing and services activity are expected to remain in expansionary territory. For manufacturing, Wells Fargo analysts have pointed out that longer supplier delivery times have significantly contributed to the ISM movement over the past 5 months.Slower supplier deliveries are generally viewed as a positive indicator, as they suggest stronger manufacturing activity and increased demand for input materials and components, putting pressure on suppliers. Much of the recent increase has been driven by the high-tech sector, although there are signs that activity is broadening across other sectors as well, as reflected in durable goods orders. In services, analysts expect a degree of softness, with the employment component likely to weaken. Attention will be on new orders and business activity as key indicators of whether demand is beginning to lose momentum. At this week’s meeting, the RBA is expected to deliver a 25-bps rate hike, taking the cash rate to 4.85%. Inflation remains a key concern in Australia, as it continues to run above the Bank’s target. Higher energy prices are one of the main drivers of elevated inflation and the RBA is concerned that these pressures could become entrenched in inflation expectations and influence business pricing decisions. Recent communication from the Bank has hinted that policymakers are leaning toward a rate hike. A majority of external board members are also expected to support the move, although some dissent might exist, Westpac analysts said. In New Zealand, the consensus for employment change q/q is 0.4% vs. the prior 0.5%, while the unemployment rate is expected to decline from 5.6% to 5.5%. Analysts have highlighted that the expected decline in the unemployment rate might be primarily caused by rising employment outpacing population growth. Westpac stressed that remaining labor market slack is likely to keep wage pressures contained despite ongoing cost-of-living challenges. Overall, the forecasts point to a slightly stronger labor market outlook than the RBNZ had anticipated in its September Monetary Policy Statement. In the Eurozone, the consensus for the core CPI flash estimate y/y is 2.5% vs. the prior 2.5%, while the headline CPI flash estimate y/y is expected at 4.0% vs. the prior 2.5%. This week’s data will be closely monitored by the ECB as it assesses its next policy move at the December meeting. Headline inflation is likely to remain above 4.0% in the coming months, largely due to higher energy prices. The Bank will pay particular attention to core inflation and food prices for signs of second-round effects spreading beyond energy but for now, the situation appears to be under control. At this week’s meeting, the BoE is expected to deliver a 25 bps rate hike, marking its first increase since the conflict in the Middle East began. One of the main reasons for the expected move is the impact of higher energy prices on inflation, with headline, core, and services inflation all being elevated. This is combined with stronger-than-expected economic growth and improvements in PMI readings and employment. The main concern is that persistently high energy costs could feed through into wages and broader price-setting. Although clear evidence of second-round inflation effects remains limited, policymakers have warned against waiting too long to respond. Wells Fargo analysts expect a further 25 bps increase in Q1 2027, taking Bank Rate to 4.25%. In Canada, the consensus for employment change is 14.5K vs. the prior -68.3K, while the unemployment rate is expected to remain unchanged at 6.5%. This would follow September’s surprise 68K decline, which was largely driven by public-sector job losses. Early hiring indicators point to improving labor demand, while the BoC’s latest survey shows that employment expectations remain positive. That said, trade uncertainty due to U.S. tariffs continues to limit firms’ willingness to expand their workforces. In the U.S., the consensus for average hourly earnings m/m is 0.3% vs. the prior 0.1%, while nonfarm employment change is expected at 63K vs. the prior 29K. The unemployment rate is forecasted to remain unchanged at 4.2%. The labor market continues to show signs of stability, with initial jobless claims remaining historically low and job openings holding broadly steady. Recent regional Fed surveys also point to modest employment growth across both manufacturing and services. Average hourly earnings are expected to rebound by 0.3% following September’s 0.1% increase, bringing annual wage growth to 2.9%. However, subdued hiring and limited labor supply growth are likely to keep wage pressures contained. Overall, the labor market remains broadly balanced, with little indication that wage growth is adding significantly to inflationary pressures. This article was written by Gina Constantin at investinglive.com.