EUR/USD (a 4-hour chart)
The pound fell to a two -month low versus the dollar after a weak CPI release - which reached an annual rate of nearly 4-year low, still then the pound recovered some its losses. Annualized inflation slowed in October to 2.2% from 2.7 % on September - while it was expected an increase of 2.5 %. Core inflation rose by 1.7 %, against expectations of growth of 2 %. Retail price inflation fell to 2.6 % y/y from 3.2 % in September. RICS House Price Balance rose in October to 57, the highest level since June 2002, but it was slightly worse than expected.
Euro continued its growth for the second day. German CPI fell in October to its lowest level since April, confirming the preliminary estimates. ECB member Asmussen said on Tuesday that there may be further action with respect to interest rates, they will depend on inflation - and he did not exclude the possibility of lowering interest rates on deposits, which is at zero level now.
The Japanese yen fell to a two-month low versus the dollar, against the background of the Japanese stock market growth. The Nikkei 225 index jumped 2.2% to nearly 2 -week high. The Australian dollar continued to decline due to lower business confidence in Australia. NAB Business Confidence decreased from 2.5- year high of 12 points in September to 5 October. NAB Business Conditions did not change in October,and remained at a low level -4 p.