Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD: US Producer Prices Index
The Euro fell slightly against its American counterpart, reflecting an anticipated increase in the US producer prices. The EUR/USD exchange rate edged 10 base points lower to the 1.1844 mark to continue temporary depreciation, though the pair passed across the 1.1850 area again on Friday morning.
The Labour Department revealed that the US Producer Price Index climbed 0.4% in September. Data suggested the growth fuelled by higher gasoline prices, as they marked the strongest rise in two years due to production disruptions in Texas oil refineries caused by Hurricane Harvey. Moreover, the gain is set to bolster the Fed's case for the next rate hike this year despite sluggish inflation readings.
EUR/GBP: EU Industrial Production
The EUR/GBP exchange rate decreased on the report showing stronger-than-expected growth in the EU industrial production. The Euro lost against the British Pound 11 base points, but then jumped to be seen trading above the 0.9000 mark. After the ECB President Mario Draghi delivered his speech, the pair fell and continued consolidation nearing the 0.8920 level.
The Eurostat reported that the growth of industrial production in the Euro area expanded to the nine-month high over the course of August, revealing a 1.4% climb versus 0.5% expected. The improvement in the EU industrial output pointed to the sector's strong growth in the Q3, which is likely to support healthy economic recovery.
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