EUROPEAN session review: Draghi dissapointed markets

Data released: 

06:00 GMT UK Nationwide Housing Prices n.s.a (YoY) (Sep) 5.0% 4.5% 3.5% 

06:00 GMT UK GBP Nationwide Housing Prices s.a (MoM) (Sep) 0.9% 0.5% 0.7% 

06:45 GMT France Consumer Spending (MoM) (Aug) 0.4% -0.5% -0.8% 

06:45 GMT France Gross Domestic Product (QoQ) (Q2) 0.5% 0.5% -0.2% 

07:00 GMT Switzerland KOF Leading Indicator (Sep) 1.53 1.47 1.37 

08:30 GMT UK Index of Services (3M/3M) (Jul) 0.5% 0.6% 0.6% 

09:00 GMT EMU Economic Sentiment Indicator (Sep) 96.9 96.0 95.2 

09:00 GMT EMU Business Climate (Sep) -0.2 -0.1 -0.2 

09:00 GMT EMU Consumer Confidence (Sep) -14.9 -14.5 14.9 

12:00 GMT DE Harmonised Index of Consumer Prices (YoY) (Sep)Preliminar 1.6% 1.6% 1.6% 

12:00 GMT DE Consumer Price Index (MoM) (Sep)Preliminar 0% 0% 0% 

12:00 GMT DE Consumer Price Index (YoY) (Sep)Preliminar 1.4% 1.5% 1.5% 

12:00 GMT Harmonised Index of Consumer Prices (MoM) (Sep)Preliminar 0 % 0% 0% 

Today Draghi spoke at an event to honour the deceased Italian economist and former government minister Luigi Spaventa. He's said nothiing about ECB capacity and it's likely to be in Italian and very unlikely to contain any comments on current policy. 

EURO 

Data released showed September EMU economic sentiment rose to 96.9 vs 96.0 expected. 

EUR/USD rose to $1.3540. Strong resistance comes at $1.3570 (Sep 19 highs), extending to $1.3600 (Feb 5 and 6 highs) with the stronger resistance is near yearly high on $1.3712. Initial support comes at $1.3460 (Wednesday’s low and 23.6% Fibo of the $1.3100 - $1.3570 rise). 

POUND 

The pound is strengthening across the board after Bank of England's Governor Mr. Carney was saying "he does not see a case for more QE in the UK." 

Data released showed on an annual basis UK Nationwide Housing Prices increased 5% in September, up from 3.5% the previous month. Analysts expected less growth of 4.5%. 

Month-over-month Nationwide Housing Prices climbed 0.9% in September, following a 0.7% rise in August and above consensus of increasing 0.5%. 

GBP/USD holds a bit lower $1.6145 (Sep 18 highs). Below $1.5990 (23.6% Fibo of the $1.5460 - $1.6140 rise and Thursday’s lows) support comes at $1.5890 (Sep 16-18 lows and 38.2%). 

YEN 

The yen advanced, heading for its second weekly gain versus the dollar, after comments by Japan’s Finance Minister Taro Aso damped bets the government will cut corporate taxes, boosting demand for the currency as a haven. 

USD/JPY tested support at Y98.40. Next support comes at Y97.60/50 (trend lines from Jun 13 and Jul 8 crossing). Minor resistance is near Y99.20 (Tuesday’s high), above - at Friday’s highs on Y99.65. Further rise may extend gains to Y100.00 (Sep 13 highs) and Y100.60 (Sep 11 highs). 

DATA AHEAD 

At 13:55 GMT US Reuters/Michigan Consumer Sentiment Index will end the day’s data.

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