EUR/USD

The European currency has opened the new week pretty good, gaining against the US competitor about 30 points. Mostly, the true cause of a hitch in the development of further downward rally lies in the absence of fundamental support needed for the implementation of downwards idea. Market participants continue to discuss the prospects of the European program of quantitative easing. There is reason to believe that at the December meeting, the ECB may decide to extend the QE program by 6 months. With regard to its volume, according to the baseline scenario, the limit of purchases will be stored on the same mark of 80 billion euro. Additional support for the euro was the data on consumer prices of the Eurozone. As expected, the growth of inflation in the EU on the basis of last month amounted to 0.4% m/m against the previous 0.1% m/m. In annual terms, the index remained unchanged at 0.4%. On one hand, a good report on the CPI reduces the likelihood of new stimulus by the ECB, on the other hand, the growth rate may be associated with reduction of the cost of oil, which at any moment risking to fall below $50 per barrel. Another factor in the increased demand for euro acted as a weakening of the US currency, which led to a decrease in the yield spread between the dollar and euro bonds. Today on the focus is US CPI data. In the case of growth of the indicator, the euro could come under serious pressure, leading EUR/USD below 1.0950.