XE Market Analysis: North America – Oct 13, 2017

EUR-USD lifted to the 1.1850 area on a Bloomberg report that the ECB is considering halving asset purchases next year, although with a longer than hitherto expected nine-month extension to the program, which has had an offsetting influence on forex markets. Attention today will be on U.S. CPI data, as benign data would fit concerns among some Fed policymakers that low inflation is not a transitory phenomenon. We expect U.S. headline CPI to lift to 0.6% m/m (median same) from 0.4% m/m, driven by the rise in petroleum prices, but see core CPI remaining at a benign 0.2% m/m.