European session: The euro strengthened
06:00 Germany PPI (September) 0.3%
06:00 Germany PPI (September) Y/Y 5.5%
08:30 UK Retail sales (September) 0.6%
08:30 UK Retail sales (September) Y/Y 0.6%
The euro strengthened as draft guidelines showed planned changes to the euro- region’s bailout fund may open the door to increased credit lines for countries such as Italy and Spain.
The shared currency reversed earlier losses after European Commission President Jose Barroso said a “positive outcome” was possible at an Oct. 23 meeting of European leaders in Brussels. The European Financial Stability Facility may be able to offer loans up to 10 percent of a member states’ gross domestic product.
The Dollar Index fell as U.S. stock futures rose, damping demand for safer assets.
EUR/USD: the pair grown above $1,3800.
GBP/USD: the pair grown in $1.5800 area. USD/JPY: the pair holds in Y76,65-Y76,85. US data starts at 1230GMT when initial jobless claims are expected to rise 1,000 to 405,000 in the October 15 employment survey week after declining only 1,000 in the previous week. Claims were at a level of 428,000 in the September 17 employment survey week. This is followed at 1400GMT the Philadelphia Fed Survey, Existing Home Sales and also the Sep Leading Indicator. The Philadelphia Fed index is forecast to rise to a reading of -10.0 in October, still indicating contraction. The pace of existing home sales is forecast to slow to a 4.95 million annual rate in September after jumping 7.7% in August to the strongest sales rate in over two years. The index of leading indicators is expected to rise 0.3% in September, with positive contributions from a steeper yield curve and an jump in the money supply. These should be offset by negative contributions from falling stock prices and building permits.