The Euro is trading at 6 weeks highs. Overview for 18.10.2019


The major currency pair continues rising influenced by Brexit positive. 

EURUSD intends to continue its growth on Friday. The current quote for the instrument is 1.1124. 

The major currency pair is feeling fine while being supported by the news that the United Kingdom and the European Union agreed on the Brexit deal. The Euro did feel nervous while policymakers were trying to reach consensus, so now it is regaining its positions. 

Yesterday, the USA published a lot of numbers. First of all, the weekly Unemployment Claims report, which showed 214K against 201K last week. It’s not critical. 

The Housing Starts declined in September and was only 1.26M after being 1.39M in August and against the expected reading of 1.32M. The same for the Building Permits: 1.39M in September against 1.43M the month before. 

The Capacity Utilization Rate dropped from 77.9% to 77.5%. The indicator really was anticipated to fall, but the final reading was worse than expected. The Industrial Production lost 0.4% m/m in September after adding 0.8% m/m in the previous month. In the case of this indicator, some decline was also expected, but no one thought it would be so serious. However, this bad news has a quite conceivable reason: there were strikes at General Motors, which had a significant influence on the volume of car output and spare parts. The future outlook for the company still remains uncertain in the light of the global demand decline. In addition to that, the entire sector is looking rather weak due to trade wars between the USA and China. 

In the future, the indicators may return into a positive area after trade agreements are signed or arranged at least, but it will take the manufacturing sector some time to recover and feel itself better.


Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.