Single Currency Strengthening
The Euro/Dollar pair rose 0.22% to trade 1.1712. Today’s most notable data is Eurozone trade balance as well as US consumer spending and UoM Consumer Sentiment. The US jobless rate posted an impressive 3.8%. Unemployment claims were almost unchanged at 204k. Inflation data for August, however, was disappointing. Consumer Price Index marked 0.1% while Core CPI made up 0.2%.
Yesterday’s ECB policy meeting was within expectations. The main refinancing rate remained at 0.00%. The QE program will be terminated at the end of this year and monthly bond purchases will be cut from EUR 30B to 15B, starting in October. The Eurozone economy was described as sustained, which pushed euro above 1.17 level, up 1.4%.
Recently, German ZEW Economic Sentiment for September posted a mild loss, closing at -10.6 and marking 6th consecutive drop in half a year. The industrial production data turned disappointing as well. German Final Consumer Price Index fell from 0.3% to 0.1% in September.