BCE interest rates touched a record low of 0.338% in October. The USD kept its strength against most of its peers but remained lower against EUR, CHF and GBP. Oil prices plunged after Saudi Arabia lowered its export prices for the US and WTI dipped below 79.40. On that matter, which he deemed as “extremely bad”, Catalan economist Santiago Niño Becerra suggested yesterday that a third recession might be approaching Europe because of lower oil prices and Greece’s third bailout, among other signals. He insisted that lower oil prices might be pointing to a slower economic global activity. As for today’s indicators, Eurozone’s PPI for September is expected to fall indicating that the deflation risk persists in the region. Also, Spanish jobless claims rise 79.2K in October vs a 19.7k rise in Sept.
EUR/USD moved higher yesterday to trade back above the 1.2500 line, and still clings to that area. GBP/JPY reached and broke above zone of 180.00, with resistance at 182.50. AUD/USD moved lower, but found support near 0.8640 and rebounded.
Watch Santiago Niño Becerra on TV channel 8TV, yesterday evening (in Catalan) http://ow.ly/3tKrP7