EURUSD continues updating its multi-month lows; the “greenback” is the king of the hour.
The major currency pair is still experiencing massive sales. The current quote for the instrument is 1.1310.
Global markets remain in the risk-off zone, thus increasing the demand for American currency.
At the same time, the statistics from the US are quite good and confirm that the country’s economy remains pretty stable, so the US Fed might reduce its stimulus programme more actively. For example, the Retail Sales in the US added 1.7% m/m in October after expanding by 0.8% m/m in September and against the expected reading of 1.3% m/m. The Core Retail Sales added 1.7% m/m against market expectations of 1.0% m/m. The readings are positive: consumer activity creates excellent support for the economy.
The US Industrial Production expanded by 1.6% m/m in October against the expected reading of 0.9% m/m. The month before, the indicator lost 1.3% m/m, so the actual reading eliminated the previous drop.
Industrial production is still experiencing interruptions in deliveries, that’s why market expectations for the nearest future are rather calm.
Later today, investors are expecting the Euro Area to release the final report on inflation for October. Most likely, the indicator will remain at 4.1%. If it does, the report will be rather neutral for the Euro.
In the evening, the US is scheduled to report on the Building Permits and the Housing Starts for October. No sensations are expected here, so the “greenback” is highly likely to continue moving in the current direction.