European session review: slow start of the week so far

The following data was published:

(Time / country / index / period / previous value / forecast)

9:00 Eurozone Consumer Price Index m / m in September 0.2% 0.4% 0.4%

9:00 Eurozone Consumer Price Index y / y (final data) September 0.2% 0.4% 0.4%

9:00 Eurozone consumer price index base value, y / y (final data) September 0.8% 0.8% 0.8%

The euro rose moderately against the US dollar, reaching the psychological level of $ 1.1000, helped by inflation data for the euro area. The statistical agency Eurostat reported that consumer prices in the eurozone rose by 0.4% after rising 0.2% in September, Annual inflation was -0.1%. Meanwhile, the growth rate of annual inflation accelerated in September to 0.4% from 0.2% in the previous month. Last Change (MoM and YoY) in line with expectations and preliminary estimate. The base index, which excludes energy and food prices, rose 0.8% year on year, confirming the forecasts and coincided with the previous estimate. In August, the index also increased by 0.8%. The maximum rise in prices in the euro area (in annual terms) was seen in restaurants and cafes (+ 0.08%). Expenses for the rent increased by 0.05%. The cost of tobacco products also increased by 0.05%. Most of the decrease in prices for fuel for transport (-0.12%), gas (-0.11%) and heating oil (-0.10%).

Later today traders expect the United States report on industrial production, as well as speeches form ECB President Draghi and Fed Fisher. According to forecasts, up to September, industrial production rose by 0.2% after falling 0.4% a month earlier.

The pound traded steadily against the dollar, while remaining near the opening level, which was due to the lack of new catalysts. Given the current situation, the pound has growth potential in unexpected positive news.. This week a lot of data will be published, which will allow a better assessment of the state of the British economy. The inflation data, which will be released on Wednesday, will shed light on how the weakening of the pound affects the price. Economists expect that in the next few months will accelerate inflation, putting pressure on consumer spending. Economists also pay attention to the data on retail sales, which will be released on Thursday and show changes in the behavior of British consumers after Brexit.

EUR / USD: during the European session, the pair rose to $ 1.1003

GBP / USD: during the European session, the pair fell to $ 1.2134

USD / JPY: during the European session, the pair traded in a narrow range