Friday’s speech by Janet Yellen did not turn out to be extremely hawkish, although the EURUSD declined noticeably in the last trading hours. Rebound occurred this morning, in the meantime, a member of the Fed’s Eric Rosengren spoke about the labor market and the US monetary policy. Yellen speech did not touch economic issues and FED politics. Yellen pointed out decreasing relationship between inflation and unemployment. Perhaps the markets interpreted this as a slightly more hawkish tone, due to the recent rise in the unemployment rate in the US to the level of 5%. In the end, EURUSD ended the day below 1.1000. Pair currently is trying to recover from last week’s decline:

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Increases may be disturbed by comment from Eric Rosengren, who this morning spoke on the air BloombergTV. Member of the Fed said that the US economy tends to overshoot moment of full employment. According to Rosengren there might be a need to take a decision to increase rates much faster than originally expected.

What are we waiting for?

The third week of October starts with awaiting for data from the Euro Zone. About 11:00 am, Eurostat will publish final CPI – forecast of the indicator came in at 0.4% vs 0.3% previously.

Around 11:00 we should also learn the latest data from China – a report on the amount of new loans should show an increase in those to the level of 1000 billion CNY.

About 14:30 we will track data from America – start from the index of the New York Fed. Fifteen minutes after 15:00 will be published a report on industrial production in the United States. The market consensus says about the growth rate of 0.2% in the month to month, compared to a decline of 0.4% in August.

About 15:45 starts the first of several planned for today speeches of members of the central banks. Fifteen minutes before 16:00 in front of the British Parliament will speak Ben Broadbent, a member of the Bank of England. About 19:35 Mario Draghi, President of the European Central Bank will deliver a word of welcome at the start of the European Cultural Days in Frankfurt, but shortly after 23:00 Phillip Lowe, the RBA will take part in a press conference in Sydney.

The day will end publication of the New Zealand CPI for the third quarter of this year.

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