Low inflation was reported in the eurozone and Japan, as economic activity remains subdued due to the Covid-19 pandemic. The UK, Australia and Canada all released weak employment data, and unemployment claims shot up in the United States.

The eurozone continues to struggle with low inflation levels. In September, eurozone inflation came in -0.3%, marking a second straight decline. The core reading slowed to 0.2%, down from 0.4% beforehand. In Germany, CPI came in at -0.2%, which was a third consecutive decline. In France, inflation declined by 0.5%.

Japan also continues to deal with low inflation. The Producer Price Index fell by 0.8% in September, marking an eighth straight decline.

In the UK, employment numbers were a mix. Jobless claims fell to 28.1 thousand, in September which was much better than the estimate of 78.8 thousand. The unemployment rate in August climbed to 4.5%, up from 4.1%. Wage growth improved to 0.0%, after three successive declines.

The Aussie lost ground after investors were treated to weak job numbers in Australia. The economy lost 29.5 thousand jobs in September, after three successive gains. As well, the unemployment rate edged up to 6.9%, up from 6.8%.

Canada also provided a soft employment report, as ADP nonfarm payrolls came in at -240.8 thousand.

US consumer inflation slowed in September, as inflation levels remain at low levels. Both the headline and core readings dropped to 0.2%, down from 0.4% beforehand. Unemployment claims climbed to 898 thousand, the highest level in seven weeks.

  1. German PPI: Tuesday, 6:00. The Producer Price Index slowed to 0.0% in August, as German inflation levels remain low.  A small increase of 0.1% is forecast for September.
  2. UK Inflation Report: Wednesday, 6:00. Consumer inflation slowed to 0.2% in August, but is expected to improve to 0.4% in the September release. Core CPI is projected to rise to 1.3%, up from 0.9% in August.
  3. Chinese GDP: Monday, 2:00.  China is projected to be the only major economy that will record growth this year. In the second quarter, GDP grew by 3.2% and the forecast for Q3 stands at 5.5%.
  4. RBA Monetary Policy Meeting Minutes: Tuesday, 00:30. The Reserve Bank of Australia left interest rates unchanged at its policy meeting earlier this month, but dropped a broad hint that it could trim rates before the end of the year. The meeting minutes will shed some light on the deliberations at the meeting.
  5. Canada Inflation Report: Wednesday, 12:30. Consumer inflation remains at low levels as the economy continues to struggle with the Covid-19 pandemic. CPI declined by 0.1% in August, after a reading of zero beforehand. Will inflation rebound in the September release?

All times are GMT

Foreign exchange (forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.
investment objectives, risk appetite and the trader’ level of experience should be carefully weighed before entering the forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which is which it can’t afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market.

Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur.
Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD: Consolidates heaviest gains in two weeks above 0.7100 amid cautious optimism

AUD/USD eases from weekly high of 0.7137 marked on Wednesday. Virus woes, dovish tone of Fed’s Bullard also probe the optimists. RBA’s Debelle, NAB Business Confidence will offer immediate direction, risk news remain as the main driver.


USD/JPY: Steeper decline expected once below 104.00

The USD/JPY pair finally woke up from its lethargy, plummeting on dollar’s sell-off. Sellers ignored a modest Wall Street’s advance and higher US Treasury yields. USD/JPY is trading at fresh monthly lows with no signs of bearish exhaustion.


Gold bulls await fresh clues to probe monthly top below $1,950

Gold buyers catch a breather above $1,920 after posting the biggest gains in a fortnight. COVID-19 data from US states, Victoria propel fears of wider wave 2.0. US Initial Jobless Claims, aid package updates will be the key.

Gold News

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News

2020 Elections: Trump is is showing signs of a comeback, will the dollar follow?

"It ain't over till the fat lady sings" – goes the adage which is relevant for the 2020 Presidential Elections as well. Two weeks ahead of election day, there are signs that incumbent Donald Trump is clawing back some support, raising the chances that the race could drag on for longer.

Read more

Forex Majors