EURUSD updated its lows. Overview for 16.11.2021

EURUSD plummeted to its 16-month lows. 

A slight decline in the major currency pair has transformed into a plunge. The current quote for the instrument is 1.1361.

Market players are starting to realise that high inflation in the US is serious and for the long haul. In October, the CPI was 6.2%, the 13-year high. The US Fed keeps being mum on the subject and provides no official comments on what is happening. Investors believe that high inflation will make the regulator more active in tightening its monetary policy and close the stimulus progress sooner in order to switch to the rate. 

Today, one should pay attention to the US Retail Sales report for October, which is expected to add 1.3% m/m after expanding by 0.7% m/m the month before. The Core Retail Sales may add 1.0% m/m, and that’s also better than in September. 

The higher the readings, the better for the US economy. Good retail sales will indicate high consumer and business activity. It means that the QE closure won’t hurt the economy – it can continue recovering without any interference. 

Also, there will be a report on the Industrial Production for October, which may add 0.9% m/m> In September, it lost 1.3% m/m, that’s why the actual reading may be rather positive.