European session review: the US dollar continued to appreciate against most major currencies

The following data was published:

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

10:15 Switzerland manufacturers and import price index y / y in October -0.1% -0.2%

12:00 Eurozone Industrial Production m / m in September to 1.8% -1.0% -0.8%

12:00 Eurozone Industrial Production y / y in September 2.2% 1.0% 1.2%

The pound retreated from session low against the US dollar, but still shows a decline. In the absence of new catalysts trading dynamics was dictate by risk appetite and sentiment. Later today, Theresa May will give a speach in which it must discuss the issue of trade relations between the United States and Britain. Later this week, investors will pay attention to the October inflation data from UK. Consumer prices in September grew at the fastest pace in almost two years, and most experts expect further acceleration of inflation due to the weakening of the pound after Brexit. Economists expect annual inflation to rise to 1.1% in Octobe vs 1% in September. In addition, markets will wait for the October data for the UK labor market, which in combination with data on retail sales is likely to move the pound significantly. According to forecasts, the unemployment rate remained at around 4.9%, while average earnings growth accelerated to 2.4% from 2.3%.

The dollar rose against the yen significantly by updating 7 of June high. Many experts believe that if the situation remains favorable in the markets it is unlikely that anything will prevent the Fed to raise rates in December. According to the futures market, now the likelihood of tighter monetary policy in December is 81.1% against 71.5% on Friday.

EUR / USD: during the European session, the pair fell to $ 1.0725, but then recovered to $ 1.0785

GBP / USD: during the European session, the pair fell to $ 1.2460 and then retreated to $ 1.2535

USD / JPY: during the European session the pair rose to Y108.14