FX.co ★ Vacations of investors continue

The European currency reacted with a slight decline to the weak data on the euro area services, as well as on retail sales, which continued to slide.

According to the statistics agency, the index of supply managers for the service sector of Italy in September this year was at 55.1 points, while economists expected it to growth to 55.3 points. In France, the economists predicted the PMI for France's services.

The only country in the eurozone, where the services sector continued to grow, was Germany.

According to the report of the statistics agency, the PMI for the services sector proved to be better than expected in 53.5 points in August against 53.4 points in July this year.

Such weak data indicate a possible slowdown in the eurozone economy.

A slight pressure on the euro was also noticeable after the release of data on retail sales, which in July this year fell by 0.3% compared with June.

Statements by Fed official Lael Brainard did not support the US dollar, which surrendered all the won positions to the European currency.

Brainard said that the Fed should be cautious about tightening monetary policy, as long as it is not confident in achieving a target inflation rate of 2%.

As for the technical picture, it remained unchanged.

The British pound did not experience any problems after the data showed that the UK services sector slowed to an 11-month low, continuing its upward movement against the US dollar.

According to the report, the index of supply managers for the services in the UK fell to 53.2 points, while economists expected growth to 53.8 points.