US labor market data came at the top of last week's economic data, showing the US economy improved despite the economy losing 33,000 jobs in September, but wage and unemployment data showed a marked improvement. The desire for the independence of Catalonia from Spain also dominated the eurozone significantly.
With the start of a new trading week, attention is focused on a few important data and events which we will highlight below:
US Inflation Data / Minutes of the FOMC meeting
Low inflation figures remain confusing to the Fed, and as the ongoing labor market data improve, inflation figures should rise. The CPI rose by 0.4% in August and is expected to continue rising by 0.6% in September, the core index rose by 0.2%, which is the most important for the Fed and is expected to rise by the same rate in September.
Also, the markets are waiting for the minutes of the Fed meeting. The bank has announced a cut in its balance sheet, has kept interest rates unchanged, and has kept interest rates projections one more time this year and three times in 2018. The Federal Reserve is keen to raise rates Interest despite slowing inflation.
Mario Draghi, Speech
Mario Draghi, the ECB's governor, is due to speak at a panel discussion in Washington and may shed more light on the upcoming decision to cut the bond purchase program and whether he will be concerned about the EURUSD exchange rate.
