The Euro found a reason to rise. Overview for 19.10.2021

The weakness of the “greenback” helps EURUSD to grow quite well. 

The major currency pair is back to growing and feeling quite confident so far. The current quote for the instrument is 1.1650.

There were very few things that might help the European currency to rise as the start of yesterday’s trading session was no good for the Euro. However, after the US reported on its Industrial Production, the situation changed radically.

The indicator dropped 1.3% m/m in September after losing 0.1% m/m in the previous month and against the expected reading of 0.3% m/m. The Manufacturing Production report showed -0.7% m/m against market expectations of 0.2% m/m. The Capacity Utilization Rate went from 76.2% to 75.2%. 

These declines may be connected with the low deferred demand – a lot of manufacturing facilities reduced their output in order not to produce extra inventories. 

The statistics weren’t very inspiring for the “greenback” as it moved downwards pretty much. The Euro, on the other hand, went up.

At the moment, when investors are eagerly waiting for official comments from the US Fed about the retail sales and inflation statistics and expecting the regulator to announce an earlier reduction of the QE program, any negative news is perceived as an attempt to postpone it. This might be the reason for today’s market emotions. 

There will be a lot of speeches from FOMC members later today, such as Bowman, Waller, and Bostic. One way or another, they might talk about the upcoming QE program reduction.