The main currency pair strengthened on Friday afternoon, gradually moving away from a two-month minimum
So, in the final week and month the Eurocurrency still found the support and is making quite an effective attempt to move away from local minima. "The bottom" of the week is located at around 1.0896 and that is the minimum since the start of August 2015. The current quotation in the instrument is 1.1007.
Today, the euro zone published statistical data, which is of interest to us. Firstly, the October inflation in the baseline values showed zero yearly change. This figure is in line with expectations. Core inflation in the region in October was 1.0% y/y with the forecast of 0.9% y/y. However, it should be understood that this last group index was calculated without volatile commodities and energy.
The conclusion here is simple: inflationary pressure in the euro area is still a problem, because it does not exist at all. One can endlessly explain this decline in energy prices, but it will not solve the issue. Apparently, the European Central Bank still has to expand the incentives.
In addition, today data was published on unemployment in September in the euro area. The index fell to 10.8% with expectations of 11%. Statistics proved to be good, but it is hardly possible to generate a particularly productive exchange driver. The European employment sector is difficult, problematic, and it will start to recover effectively only when the business begins starts working. The earliest is this summer 2016.
By the end of today's session, the euro/dollar will be trading in the range of 1.0985-1.1035.
RoboForex Analytical Department
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