EUR/USD has gained momentum and is ready to respond to the latest developments.
The major currency pair is currently in a consolidation phase this Tuesday, with the current EUR/USD exchange rate at 1.0550.
The beginning of the week has been relatively quiet, lacking major news or statistics. However, there has been a retreat of the US dollar while the capital markets exhibit interest in risk.
Considerable changes could be on the horizon today. The macroeconomic calendar is set to deliver a significant volume of key statistics, offering substantial material for the market to react to.
Throughout the day, the eurozone will release the ZEW economic sentiment index for October. Projections indicate an improvement to -8.0 points from the previous -8.9 points. This data will provide insights into how the economy is responding to the European Central Bank’s readiness to pause monetary tightening.
The US is gearing up for two pivotal releases. The first is the retail sales data for September, with forecasts suggesting a 0.2% month-on-month growth compared to the 0.6% increase in August. A more moderate report would signal that consumers are adjusting their spending considering the high prices.
The second release is the industrial production data for the last month, which might have increased by only 0.1% month-on-month in September after a 0.4% expansion in August. These numbers are relatively weak and could potentially impact sentiment negatively, unless the report’s components reveal something noteworthy.
Overall, the US dollar seems to maintain a relatively strong position.
The post EUR/USD Prepares for Action: Overview for October 17, 2023 appeared first at R Blog – RoboForex.