Three major events of the week ahead that certainly deserve our attention are the ECB, Bank of Canada and Bank of Japan policy meetings. Preliminary data showed that inflation is accelerating in all three countries, primarily due to the rise in the cost of factors of production - labor, raw materials, intermediate goods used in production. Until recently, central banks tried to label these developments on the supply side as temporary, but now they are forced to cautiously signal to the market that the level of monetary easing will have to be reduced. How serious their concerns about inflation will determine the movement of the currency pairs, which include EUR and JPY and CAD. Expectations of a hawkish shift at the upcoming meetings led to the strengthening of the Euro, Yen and CAD against the dollar in the outgoing week.

Investors next Wednesday will also be interested in data on basic orders for durable goods in the US (to assess the consumer boom in the US, which is now widely discussed), as well as the EIA report on inventories of crude oil and refined products. Recall that this week the agency's report indicated a sharp decline in gasoline and distillates, which may be a signal of strong demand for fuel in the United States.

On Thursday, data on the housing market and jobless claims in the US are due. They will help us understand what is happening to the American economy now and what to expect from the current expansion.

Eurozone inflation report for October will be released next Friday. Taking into account the ECB meeting, it may additionally clarify the outlook for ECB tapering of the PEPP program which is currently the key driver of Euro market rates.