November looks set to be a month of consolidation for currency markets given there are no major central bank meetings scheduled.
That said, some interesting activity data is due to be released in the coming week. On Tuesday, China will release investment and sales data, which is likely to show continued expansion of the economy. Also out on Tuesday are several European GDP data releases and the ZEW economic sentiment survey. This should reinforce the already positive growth expectations for the region. The most important US releases are due on Wednesday, with the announcement of CPI and retail sales data.
These data are important in gauging the impact of the recent hurricanes on the US economy. CIO believes that EURUSD will find a floor due to solid growth in Europe and rising disagreement in the US congress about possible tax reform.
(By UBS)
