Global macro overview for 18/10/2016:
The Industrial Production data from the US turned out to be a little worse than expected by global investors. The Federal Reserve revealed yesterday that the US industrial output advanced only 0.1% in September, compared to the preceding month’s downgraded fall of -0.5%. Market participants anticipated a rebound of 0.3% in the reported period, which might suggest that the economy grew only at a moderate pace in the third quarter. Moreover, the industrial production is considered to be highly sensitive to changes in interest rates and consumer demand, so the current possibility of another interest rate hike by FED might be greatly influenced by the data.
Let’s now take a look at the EUR/USD technical picture in the 4H time frame. The pair is clearly bouncing from the support at the level of 1.0958, but still has not tested the technical resistance at the level of 1.1043. The reason for this behavior might be the market positioning for the next big macroeconomic event on Thursday: the ECB interest rate decision and press conference. This is why the pair stays range-bounded.
The material has been provided by InstaForex Company – www.instaforex.com
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