Eurozone Inflation Picks up in September

U.S. consumer spending declined unexpectedly in August for the first time in seven months, official data showed on Friday.  On the other hand, inflation showed signs of accelerating, showing mixed signals that could keep the Fed cautious about raising interest rates. In addition, the personal-consumption expenditures price index, which accounts for more than two-thirds of U.S. economic activity, fell 0.1% in August after accounting for inflation, the Commerce Department said on Friday.

The U.S. dollar fell slightly and settled at 95.40.

Euro recovered at the end of last week’s trading session, as concerns about Deutsche Bank eased slightly. On the other hand, German inflation rates rose in September to touch its highest level in 16 months. Euro settled above $1.12 most likely thanks to such data. Technically, the single currency could settle above $1.12 during the course of the day, in anticipation of the U.S. nonfarm payroll report.

On Friday, UK’s vast services sector has defied expectations in the weeks after the vote to leave the EU. However, GBP failed to settle above $1.30 and traded below such level.  On the other hand, cable is trading under pressure due to the uncertainty over the Brexit.

Gold prices fell on Friday as concerns about Deutsche Bank eased slightly. The yellow metal declined to $1,315 and could retest the resistance level of $1,330 once again during the course of the week, in anticipation of the U.S. nonfarm payroll report.

On Friday, oil prices fluctuated. U.S. crude settled above $48 on Friday and could decline to $47 before jumping to $50. 

The most important economic events:

• USD ISM Manufacturing (SEP): (GMT: 16:00) – Important – Forecast (50.3) – Previous (49.4).
• USD ISM New Orders (SEP): (GMT: 16:00) – Important – Forecast (N/A) – Previous (49.1).
• USD ISM Prices Paid (SEP): (GMT: 16:00) – Important – Forecast (53.5) – Previous (53).

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.