The Week in Review: US Inflation, Fed Decision, and Market Impact
The EUR/USD pair experienced a decline towards a two-month low of 1.0900, with the US Dollar gaining strength following key developments in the United States.
US Economic Highlights
- FOMC Minutes revealed a consensus on a potential interest rate cut, with most members supporting a 50 bps reduction.
- September CPI data showed a slight increase in inflation, aligning with market expectations.
- Jobless Claims and PPI figures provided mixed signals about the US economy’s current state.
European Economic Indicators
- German economic data showed a decline in Factory Orders but a rise in Industrial Production.
- Eurozone Retail Sales and Sentix Investor Confidence displayed modest improvements.
- ECB Accounts indicated concerns about future inflation and economic headwinds.
Global Market Sentiment
- Chinese stimulus measures and geopolitical tensions impacted market sentiments worldwide.
- Wall Street maintained a positive outlook, reflecting optimism about the US economy.
Upcoming Economic Events
- ECB’s monetary policy decision on Thursday is expected to include a 25 bps interest rate cut.
- Key economic releases include EU Industrial Production, HICP, Germany’s ZEW Survey, and US Retail Sales data.
EUR/USD Technical Analysis
Technically, the EUR/USD pair is bearish, with key support levels at 1.0900 and 1.0800. Resistance is seen at 1.1000 and 1.1070.
For a more detailed analysis, refer to the chart below:
Stay Informed with the ECB Rate On Deposit Facility
For more insights into the European Central Bank’s key interest rates and their impact on the economy, check out the latest information on the ECB Rate On Deposit Facility.
Next release: Thu Oct 17, 2024 12:15
Frequency: Irregular
Consensus: 3.25%
Previous: 3.5%
For further details, visit the European Central Bank’s official website.