EUR/USD advanced for the second session on speculations that Spain will ask for a bailout. Even the downgrade of the nation’s credit rating was perceived in the favorable light as it may spur the government to ask for aid sooner. As for the US macroeconomic data, it was rather positive, reducing demand for the dollar as a safe asset.
PPI rose 1.1% in September, seasonally adjusted. That was smaller growth than in August (1.7%), but bigger than was predicted by analysts (0.8%).
Preliminary estimate for Michigan Sentiment Index was at 83.1 in October, compared to the median forecast of 78.1. The September reading was revised negatively from 79.2 to 78.3.
Treasury budget posted a surplus of $75.0 billion in September, following the deficit of $190.5 billion in August. The projected surplus was $59.0 billion.
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