Euro zone September inflation release later this week will be key for euro move
Growth has been slowing over the summer: July saw 3m fewer jobs added than in June. Despite the rebound from the corona virus pandemic, only half of the jobs lost since the outbreak began have since been regained. The unemployment rate stood at 8.4 per cent in August. It is expected to have fallen further to 8.2 per cent this month, with US employers adding 865,000 jobs.
At the same day, key release to drive either side. Friday’s inflation reading for September will provide the bank and investors with a better idea of how the corona virus pandemic is weighing on the prices of consumer goods after a poor reading for August. The euro zone slid into deflation for the first time in four years last month with a lower than expected headline reading of minus 0.2 per cent as reported in FT.
US Market ends higher as core capital goods orders beat expectations
The US stock market finished session firmly in black after whipsawing between positive and negative territory on Friday, 25 September 2020, on the back of bargain buying in recently battered stocks after official data showed new orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated.
Data from the Commerce Department on Friday showed new orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated, suggesting a rebound in business spending on equipment was underway after a prolonged slump. US Durable Goods Order rose 0.4% in August after jumping 11.7% in July. Durable goods orders were supported by a 0.5% rise in orders for transportation equipment. Orders for non-defense capital goods excluding aircraft, rose 1.8% last month, according to the Commerce Department. Data for July was revised up to show that core capital goods orders rose 2.5% instead of 1.9% as previously estimated.
TREND : SIDEWAYS
Time : 28/09/2020
Pivot : 1.1641
Technical View : LONG ABOVE 1.1658
Target : 1.1673, 1.1715, 1.1745
Technical View : SHORT BELOW 1.1619
Target : 1.1597, 1.1568, 1.1525