Ekonomické zprávy
15.10.2021

European session review: USD slips amid improving risk sentiment

TimeCountryEventPeriodPrevious valueForecastActual
06:45FranceCPI, y/ySeptember1.9%2.1%2.2%
06:45FranceCPI, m/mSeptember0.6%-0.2%-0.2%
09:00EurozoneTrade balance unadjustedAugust20.716.14.8

USD continued to retreat against most of its major rivals in the European session on Friday, as investors' risk appetite improved, helped by positive earnings news from the U.S. big companies and relatively encouraging economic data.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.04 to 93.92.

Yesterday’s report on the U.S.  Producer Price Index (PPI) for September indicated that the producer inflation could be nearing its peak. Excluding the volatile food, energy and trade services components, the PPI edged up only 0.1% m/m last month after increasing 0.3% m/m in August. In the 12 months through September, the core PPI jumped 5.9%, decelerating from 6.3% in the previous month.

In addition, weekly initial jobless claims were reported at 293,000, the lowest level since the start of the pandemic.

The latest raft of data eased somewhat inflation concerns and raised hopes for a steady economic recovery.

Sentiment also was bolstered by better-than-expected Q3 earnings reports from several U.S. high-profile companies, including the country’s largest banks.

The safe-haven CHF and JPY also depreciated against other major currencies. The former traded higher against the U.S. dollar,  while the latter was lower.

Expectations of quicker-than-expected tightening of monetary policy by the Federal Reserve have helped the U.S. currency appreciate since early September. 

The FOMC minutes from the September meeting, which were released Wednesday afternoon, confirmed that the reduction of the Fed’s asset purchases is likely to begin this year. In addition, they revealed that the purchases would be reduced on a monthly basis by $15 billion until the middle of 2022.

Investors are now awaiting the release of the U.S. retail sales data for September (due at 12:30 GMT), hoping to get more clues on the health of the world's biggest economy.

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