European session review: the US dollar continued to fall against most major currencies

The following data was published:

(Time / country / index / period / previous value / forecast)

8:00 Eurozone Economic ECB bulletin

10:00 UK Balance industrial orders Confederation of British Industry in September -5 -5 -5

The British pound rose moderately against the dollar, reaching the 19 Septemhber hig, but then lost some positions, which was associated with a partial profit-taking and expectations of the performance of the Bank of England. Pressure on the currency has also provided a report of the Committee on the financial policy of the Bank of England, which reported that the country will face a period of uncertainty. "The prospects of financial stability are problematic.

The results of a survey by the Confederation of British Industry (CBI) showed that manufacturers expect a sharp acceleration in production in the coming months. In September, 18 percent of enterprises reported that total orders to be above normal, and 22 percent said that the orders were below normal. As a result, the balance of orders amounted to -5, in line with expectations and the index for August. Meanwhile, the production volume amounted to 11 percent. The survey also revealed that production growth is likely to accelerate in the next three months. About 37 percent of companies forecast an increase, and 15 percent are waiting for a fall, bringing the balance to 22. The average price is forecast to decrease slightly over the next quarter. "The fall of the pound has increased the international competitiveness of many enterprises and export orders volume remained much higher than the average, but in the future, manufacturers expect a lot of problems, because they need to adapt to new relations with the EU and the rest of the world..", - Said Raine Newton-Smith, Chief Economist CBI.

The euro has appreciated considerably against the US dollar, reaching the 16 September high. Experts point out that the US currency remains under pressure against the background of yesterday's Fed decision. Appreciation of the euro also contributed to the strong growth of stock indices in Europe.

Recall, the US Federal Reserve decided to leave the interest rate at the target range of 0.25-0.50%. The decision of the Central Bank is in line with expectations. Fed Chairwomen made it clear that the central bank still intends to raise the rate this year, but did not specify the terms of such a step. "I expect to see it, if the current process in the labor market will continue and will not be any significant new risks", - she noted. In addition, the Fed reduced its forecast for the hikes for in the next year to two (three). Yellen said that divisions within the FOMC basically boiled down to the terms of a rate hike. According to the futures market, the likelihood of tighter monetary in December is 58.4%.

EUR / USD: during the European session, the pair rose to $ 1.1250

GBP / USD: during the European session, the pair has risen to $ 1.3082, but then went back up to $ 1.3045

USD / JPY: during the European session, the pair has recovered to Y100.87 from Y100.08