As anticipated last week, the most important figures of this week were those relating to the inflation of the Eurozone and the United States. Both data have made the fate of the EUR / USD cross.
US October inflation confirmed the expectations of analysts.
The data, on a monthly basis, marked a + 0,1%, which moved away from the result of the previous survey of + 0,5%. On an annual basis, however, inflation recorded + 2,0%, which did not confirm the previous figure at + 2,2%.
The main consumer price index was + 0,2% on a monthly basis and + 1,8% on an annual basis, against the previous + 0,1% and 1,7% respectively. US retail sales increased by 0,2% on a monthly basis.
Eurozone inflation also confirmed the forecasts of analysts for the month of October.
The figure recorded + 0,1% on a monthly basis and a + 1,4% on an annual basis, the previous figures was respectively + 0,4% and + 1,4%.
Core inflation, however, fell by 0,1% on a monthly basis, but advanced by 0,9% on an annual basis. Even in this case the expectations have been confirmed.
Immediately after inflation news, EUR / USD exchange rate climbed above the key level to 1,1760, surpassing a major trend line, linking the levels reached on September and October.
The exchange rate of the euro-dollar thus has been able to reverse the course and return to the upward trend in the short run.
The other major news related to the eurozone were the trade balance and the preliminary GDP of the third quarter.
The trade balance showed a sharp improvement over the previous survey, as the trade surplus went from 16,1 billion to 26,4 billion euros.
The preliminary GDP subsequently confirmed both the expectations of the market and those published in the previous survey, marking a 0,6% in the third quarter of 2017.
On an annual basis, Eurozone’s GDP grew by 2,5%, while industrial production fell 0,6% on a monthly basis, rising by 3,3% on an annual basis, compared to the previous one of 1,4% and + 3,9%.
As far as for the US, the other important news concerns the initial requests for unemployment benefits, which rose from 239.000 to 249.000 (analysts had planned 235.000 units).
Unemployment claims, which in the previous survey amounted to 1.901 thousand (revised to 1.904 thousand), amounted 1.860 thousand units.
At the end of the week, after the release of all data, the euro slightly lagged behind the pound, but fell against the dollar. The dollar, on the other hand, has been put under pressure especially against the yen, where he lost ground and dropped to the lowest level since last month.
Next week will be relatively quiet on the market movers. Protagonists of the Economic Calendar will be the minutes of the European Central Bank and Federal Reserve, regarding the latest monetary policy meetings of the two major central banks.
To attract the attention of the traders, there will also be the market movers on European consumer confidence, German GDP and US manufacturing SMEs and services.