The EURUSD pair is prone to falling. Overview for 19.10.2023

The primary currency pair came under pressure by Thursday. The current EURUSD exchange rate stands at 1.0530.

The overall market sentiment since yesterday has been driven by risk aversion due to geopolitical complications and deteriorating macroeconomic signals, leading to renewed demand for the USD.

The currently published statistics offer limited significant information.

In September, the eurozone's final consumer price index was 4.3% y/y, which is a positive development compared to the 5.2% y/y figure in August. However, investors were already aware of this improvement, as the preliminary calculation had indicated the same result.

The US released data on new building permits in September. The indicator rose by 1.47 million, surpassing expectations. Nevertheless, compared to August figures, it appears somewhat subdued. The high cost of credit is likely a contributing factor, as it is not as challenging to approve construction as it is to secure the funding for it.

Today, the US will continue to publish reports on the real estate sector. It is worth paying particular attention to the information on sales in the secondary market, as it may have decreased significantly, which would be a negative surprise.