Forex. Euro/Dollar (EUR/USD) forecast for today
The euro/dollar exchange rate is ready to overcome the maximum values of last week and reach the important level of 1.1640. Once again, an attempt to gain a foothold in a higher trading range is visible. The volume of US industrial production for September came out worse than forecast and worse than the previous value. The indicator published by the US Federal Reserve serves as a leading indicator of employment in the manufacturing industry, average earnings and personal income.
The yield of 10-year Treasury bonds has approached the October maximum, and is now at the level of 1.602%
The US dollar showed weakness on Monday, and weak Chinese GDP data and rising oil prices make investors assume that inflation will lead to an increase in interest rates.
According to media reports, CBA experts note that the prospects for further strengthening of the dollar remain, as the likelihood of an early tightening of policy by the Federal Reserve System (FRS) is growing. Since the September meeting of the regulator, expectations of an increase in the base rate have increased as inflationary pressure increases. Data from the University of Michigan, published last Friday, showed an increase in Americans' inflation expectations for the medium term (next year) in October to 4.8% from 4.6% a month earlier.
Today, the United States will publish the number of building permits issued and the volume of construction of new homes. Member of the US Federal Open Market Committee (FOMC) Mary Daly and President of the Federal Reserve Bank of Atlanta Rafael Bostic will speak today.