EURUSD is ready to make moves. Overview for 17.10.2023

The main currency pair is in a consolidation phase on Tuesday. The current EURUSD exchange rate stands at 1.0550.

The beginning of the week was quiet, bringing neither news nor statistics. Nevertheless, the US dollar has retreated while the capital markets have shown interest in risk.

Today could bring considerable changes. The macroeconomic calendar will present a substantial volume of significant statistics, providing ample material for the market to react to.

During the day, the eurozone will release the ZEW economic sentiment index for October. It is expected that the index has improved to -8.0 points from the previous -8.9 points. This would offer a clear answer to the question of how the economy is responding to the European Central Bank's readiness to pause in monetary tightening.

Bank's readiness to pause in monetary tightening.

The US is preparing for two significant releases. The first is the retail sales data for September. The forecast suggests a 0.2% m/m growth, compared to the 0.6% increase in August. A more moderate report would send a positive signal, indicating that consumers are taking high prices into account and reducing their spending.

The second is the industrial production data for last month, which may have increased by only 0.1% m/m in September after expanding by 0.4% m/m in August. These are weak numbers and could be a reason to worsen sentiment unless there is something interesting in the components of the report.

Overall, the US dollar's position appears quite strong.