The initial inflation numbers for October show a slide of 0.1% in October, worse than no change. Year over year, a drop of 0.2% in prices was reported. GDP growth looks much better: a grwoth rate of 0.5% in Q3 and a y/y grwoth rate of 1.6%, both as expected.
EUR/USD is grinding marginally lower, at 1.2584, ahead of support at 1.2570. Update:Â the pair extends its falls, tackling support at 1.2570.
The euro-zone’s fourth largest economy was expected to report a falt CPI, 0% y/y and a GDP growth rate of 0.5% in Q3, or 1.6% y/y.
EUR/USD traded on low ground, around 1.2587, still suffering from the Fed hawks.
The Federal Reserve decided to end QE3 as expected, but more importantly had an upbeat view on the labor market. The words “solid gains†and “diminishing underutilizationâ€Â are not that common from the Fed.
In the immediate response to the Fed decision, EUR/USD formed an H&S pattern, with 1.2620 as the shoulder line. It is clear to see that we are below this line now.
