Breaking Forecast 10.31.2017
All the news is in favor of the US dollar. On Monday, an important report on US consumers’ incomes/expenditures was published: revenue growth was +0.4% for the month, expenses + 1% for the month (on the upper range of forecasts).
Inflation, however, according to the PCE index (on the consumer goods basket) is only +1.6% for the year.
However, a report on prices for agricultural production will be published later in the day — and there is quite a confident growth of +6.1% to the level of the previous year.
Thus, before the decision of the Fed on monetary policy on Wednesday, November 1, there strong data on the US economy.
Given the strong decline in the EURUSD rate at the end of last week, a new wave of decline is expected: a breakdown down the EURUSD level of 1.1575 and a decline to 1.1480.
Sell the euro from the 1.1660 — 1.1700 with the targets of 1.1575 — 1.1480.