Yesterday’s violent market moves reverberate through Asian dealings this morning. Both the dollar and core bond yields take a breather but stocks trade mostly negative. Japan underperforms. China trades mixed while moving into a week of holidays starting tomorrow. European investors on the other hand have their hands full. Several national September inflation readings are due, from Spain over Belgium to Germany. Consensus for the latter is set at 0.3% m/m and 4.5% y/y vs 0.4% and 6.4% last month. The sharp drop reflects large favourable base effects as reduced public transport costs from June-August last year drop out of the comparison. Rising oil prices offer counterweight. The bar for markets to price in additional ECB hikes right now is high but we do think today’s outcome is to underscore the higher-for-longer narrative. That offers downside protection to yields. We stay cautious on the euro though. It doesn’t look good at all from a technical perspective. EUR/USD 1.0484/1.0516 has to survive or the 1.04 big figure is next.