US Jobs Report and Eurozone Inflation Data Set Stage for October Rate Hike

The US jobs report and eurozone inflation data will be crucial in determining the Federal Reserve's next move on interest rates.

Financial markets have already priced in a higher likelihood of an October rate hike, but two key reports will confirm or deny this expectation. The September jobs report is due out Friday, with economists predicting a downward revision to August's strong number, which was 100k jobs added, and an unemployment rate that remains at 4.1%. This outcome would keep the possibility of an October rate hike alive.

In the eurozone, inflation has been driven mainly by energy prices, but core inflation has remained steady at 2.4% since February. Analysts will be watching for signs of second-round effects kicking in.