EUR / USD is back under the level of 1,10 in the second week of October, which had not happened since the month of July. The euro-dollar exchange rate collapsed from 1,118 up to 1,097 venting the accumulation motion started in month of June and it is finally able to get out of the box in which he was held for several weeks.
The closure of Wall Street on Friday was accompanied by Yellen’s words that served to give the final lunge by the greenback against the euro.
The President of the Federal Reserve, Janet Yellen, has expressed the need to develop more “high-pressure policies” to exit the global economic stalemate, however, without specifying which kind of intervention.
The greenback strengthens then on the closing of the markets. The US inflation will be the first real balance for EUR / US but everything will be decided after Mario Draghi press conference on next Thursday.
Meanwhile, next week, it was published the data on Eurozone trade balance of the month of August where the surplus went from 25.3 billion to 18.4 billion.
About United Stated, last month retail sales rose by 0.6% on a monthly basis, against the decline of 0.2% recorded the previous month. Analysts had forecast a strong 0.6% recovery.
The Michigan confidence index, data for the US consumer sentiment for October, fell to 87,9. In the previous survey of the consumer sentiment it was settled at 91.2. Analysts had expected the index to rise to 91.9 Therefore, their expectations were disregarded.
Moving from one to another economic powerhouse, China’s inflation rises again in September. Prices rose more than expected both in terms of consumption and in the manufacturing sector showing an unexpected strong economic recovery.
Consumer price inflation in China showed a 1,9% annualized increase in September, while producer prices rise 0,1% year on year, the first increase reported on the Economic Calendar from 2012.
These data were expected to assess the health of the Chinese economy engaged in the shift from one focused on manufacturing into an economy based on consumption. Deflation in consumer prices has shown a declining in recent months with a price rebound in raw materials and a slow return of profitability for companies.
The day before the release of these data, the market was worrying about the health of China on the wake of the data on the trade balance well below expectations.
Let’s move now to a new week of data. The main indicators to be monitored in this new week of trading on the Forex market (from the 17th to 31st of October 2016) are: the October meeting of the ECB, consumer inflation data for many of the most important economies in the world and China’s Gross Domestic Product .
In detail, there will be the consumer price inflation for the US, Eurozone, United Kingdom, New Zealand and Canada, accompanied by the decision of the Canadian bank on interest rates.
Focus on the US dollar to confirm the appreciation finally started last week and the British pound, which is preparing for a high volatility in conjunction with the publication of these market movers.