On Tuesday the 20th, the UK ILO unemployment rate fell and the German ZEW Economic Expectations Index declined, while reports on US-Iran talks and the release of US housing starts followed in quick succession. Oil prices and the dollar fluctuated after the reports, and the market is now watching how developments unfold.
On Tuesday the 20th, the UK ILO unemployment rate fell to 4.7%, while average weekly earnings growth rose 3.7% year on year, exceeding expectations. Attention turned to developments in the foreign exchange market.
The German ZEW Economic Expectations Index fell to 28.1 in October, below the market forecast of 30.0 and the previous month's 34.7. ZEW assessed that Germany's economic recovery was not self-sustaining.
Oil prices plunged and the dollar fell after some reports suggested that a US-Iran agreement was imminent. However, comments by diplomats later denied the view that an agreement was near, narrowing the dollar's losses.
US September housing starts came in at an annualized 1.221 million, below the market forecast of 1.305 million and down from 1.288 million the previous month.