EUR/USD was bought and sold near the 0.9920 price level during the opening of this week, following its closing at the 0.9965 price level three days ago (Friday). The money market commenced the week on a poor note during lukewarm Chinese data. Consequently, this indicates more economic regression in October.
This can be seen as the NBS and production PMI reduced to 49.2 in October, and the non-production PMI dipped to 48.70. Market worries were aggravated by the decision made by China to place Wuhan under lockdown as coronavirus cases worsen in this part of the country.
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At the same time, troubling European data is affecting the EUR. Germany’s Retail Sales increased by 0.9% Month over Month during September, going by the preparatory estimation of the third quarter Domestic Product. Also, the yearly development was 2.1%, lower than the past 4.1%. In the end, the preparatory estimate of last month’s (October) European CPI arrived at 10.70%. Consequently, this CPI data stands as the highest, higher than the anticipated 10.20%.
The United States has experienced a calm day as it pertains to data, but will have a busy week. This is because the United States Fed is going to discuss the monetary guidelines tomorrow Wednesday. Additionally, the country will release its Non-farm payroll data come Friday.
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