Fundamental Analysis – 19/10/2015

Good Morning, 

The EURUSD tumbled 46 points to 1.1341 after European inflation data met lowered expectations but the trade balance narrowed more than expected. The GBPUSD gave back 11 points as the USD rallied last Friday. US consumer sentiment rebounded strongly in early October, suggesting that the economic recovery remained on track despite headwinds from a strong USD and weak global demand that have weighed on the industrial sector, particularly manufacturing. Crude inventory data has shown a massive build up once again as most of refineries are in a process of their maintenance. EURAUD is trading at 1.5680 while EURJPY is trading at 135.55. 

In this week, investors will be focusing on Chinese third quarter economic growth data due on Monday amid lingering concerns over the health of the world's second biggest economy. Increased infrastructure investment is key to stabilizing China’s economic growth, while calling on the central bank to lower the cost of financing for companies and increase overall credit. It will be a very unusual week for data, with many of the major housing reports on tap and not much else. AUDUSD is trading at 0.7245 while USDJPY is trading at 119.26.

An increasingly cautious Fed, coupled with an uncertain EM outlook, has benefited the EUR recently, contributing to tighter euro area financial conditions. Falling prices in the Eurozone are putting pressure on the European Central Bank to prevent the single currency area from slipping into a dangerous downward spiral of deflation. CADJPY is trading at 92.25 while GBPJPY is trading at 184.03.

Daily Performances (00.00 am. GMT); 

I hope you all have a nice day.

All the figures are as at the writing time.