The Euro is still “captured” by bears. Overview for 26.10.2018

The major currency pair remains under pressure on Friday morning.

The “bearish” trend is dominating in EURUSD at the end of another trading week. The current quote for the instrument is 1.1367.

So, at first investors barely responded to the results of the European Central Bank meeting and Mario Draghi’s press conference that followed. However, later they saw some kind of insecurity of the regulator relating to the Italian issue. The ECB admitted that there was a problem indeed and although this problem was nothing but fiscal, it might really go deeper and hurt the banking sector.

We reminds you that the European Commission and Italy continue discussing the Italian budget for the next year, which includes the deficit in the amount of 2.4% of the GDP.

The statistics published by the USA in the evening were mostly positive. Several numbers were already reported yesterday, but there is one new that is worth mentioning: the Pending Home Sales added 0.5% m/m in September after losing 1.9% m/m in August and against the expected reading of +0.1% m/m.

Later in the evening, investors’ attention will be focused on the US GDP in the third quarter. Market expectations imply 3.3% q/q after being 4.2% q/q in the previous quarter. The stronger the reading, the better for the USD, although one should remember that the GDP reading are usually revised twice, so there is no need to hurry with conclusions.