EURUSD is quite lazy early in another October week but market players are monitoring the global external background very carefully.
The major currency pair is obviously accumulating strengths for future movements. The current quote for the instrument is 1.1705.
The statistics from the USA published last Friday were rather mixed. For example, the Retail Sales skyrocketed by 1.9% m/m in September although it was expected to add only 0.7% m/m. In August, the indicator expanded by 0.7% m/m and no one expected a boom in the demand. The Core Retail Sales added 1.5% m/m against the expected reading of +0/4% m/m, which means that consumers not only were interested in big-budget purchases but became more active in general.
However, the September report on the Industrial Production was pretty sad as the indicator lost 0.6% m/m in September after adding 0.4% m/m the month before and against the expected reading of +0.6% m/m. The Capacity Utilization Rate also dropped, from 72.0% in August to 71.5% in September.
A decline in industrial production may be a signal that producers and manufacturers are expecting a contraction in demand due to the pandemic or possible political changes in the country.
The preliminary report on the Consumer Sentiment from the University of Michigan showed 81.2 points in October after being 80.4 points the month before. Again, this is a positive number, which, however, shouldn’t be overestimated: consumers are very sensitive to external background and news, that’s why the sentiments may quickly change at any moment.
