USD has retreated. Overview for 18.10.2023

The primary currency pair surpassed yesterday's levels on Wednesday, but uncertainties loom regarding future developments. The current EURUSD exchange rate stands at 1.0576.

The US released two significant reports yesterday.

The first report concerned retail sales, which increased by 0.7% m/m in September, exceeding the forecast (+0.2%) and even surpassing the August figure (+0.6%). The improved performance in retail sales may be a pro-inflationary factor.

The second report provided insights into the state of the manufacturing sector. In September, industrial production expanded by 0.3% m/m, surpassing expectations of a 0.1% growth and the previous month's 0.4% increase.

Both indicators underscore the central concern in capital markets, namely the potential for factors that could intensify inflationary pressures.

Today, investors will pay close attention to the components of the real estate sector. Statistics for September, covering housing starts and the number of building permits issued, are set to be published. While significant growth is anticipated in the former case, a decline is expected in the latter.