- EUR/USD is on track to report the third consecutive monthly loss.
- The pair may print fresh 2.5-year lows on a dismal German labor market and inflation data.
- Italian bond yields may spike, adding to bearish pressures around the EUR.
EUR/USD is currently trading at 1.0932, representing 0.50% losses on Sept. 1’s opening price of 1.0990.
The currency pair is on track to post its third straight monthly loss, having dropped 2.58% and 0.79% in July and August, respectively.
Focus on German data
The German retail sales, due at 06:00 GMT, are expected to show the consumer spending jumped 3.3% year-on-year in August. Meanwhile, the labor data due at 07:55 GMT is expected to show the jobless rate remained unchanged at 5% in September.
The German Consumer Price Index (CPI) scheduled for release at 12:00 GMT is expected to show the cost of living ticked up by 1.9% month-on-month in September, having dropped 0.2% in August. The annualized figure is seen rising by 1.4%.
Italy’s economy minister suggested on Sunday that the country’s budget deficit would be set at around 2.2% of domestic output next year. That could put the nation at odds with the European Union. Italian bond yields, therefore, may rise, pushing the EUR lower.
Technical levels
Share
