US Economic Data Due Later This Week (EUR/USD), GBP Supported By Strong Fiscal Data (EUR/GBP, GBP/AUD)

Summary:

• The Euro Area is not expected to disclose many significant economic data points this week.
• The British Pound was stronger against the Euro.

USD remains strongly supported

The market is reflecting bullish signals for this currency pair. The prognosis for the single currency will probably be influenced by US data releases over the next few days since the Euro Area is not expected to disclose many significant economic data points this week. Later in the week, with the major release of the September inflation figures on Thursday, the major US economic reports begin. The US dollar is still strongly supported while the Euro appears to be moving lower in a one-way fashion, therefore EUR/USD is moving lower on the best of all worlds scenarios.

✕ EUR/USD Price Chart

UK began the week with good news on the fiscal front

The market is reflecting bullish signals for this currency pair. Beginning a new week with good news on the UK's fiscal front and the development of a new facility at the Bank of England to ensure domestic money markets stay stable, the British Pound was stronger against the Euro and stable against the US Dollar. To reassure markets that the government's economic strategy is sound, the Treasury announced it is pushing back the release of independent economic predictions and a vital fiscal policy update until October 31.

The independent Office for Budget Responsibility will also issue an economic and fiscal forecast in addition to the Medium-Term Fiscal Plan, according to the Treasury.

✕ EUR/GBP Price Chart

AUD weaker amidst lower demand exports from china

While their colleagues at Goldman Sachs claim to have recently revised lower their estimates for the currency, notably against the Pound, Credit Suisse analysts continue to remain gloomy on the Australian Dollar. The decline in growth prospects caused by the Ukraine crisis, the stalling of Chinese GDP, and anticipation of further Federal Reserve interest rate increases have all contributed to the continued decline in global equities markets. Meanwhile, one particular obstacle facing the Australian dollar is the slowing demand for Australian commodities coming from China.

✕ GBP/AUD Price Chart

Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com