BREAKING: French CPI lower than expected, EURUSD down on the news

France, Inflation Data for September: 

• French HICP YoY: 1.5% Final: vs 1.9% (forecast) vs 2.2% (previous) 
• French HICP MoM: -1.2%  Final: vs -0.8% (forecast) vs 0.6% (previous) 
• French CPI YoY NSA: 1.2% vs 1.6% (forecast)  vs 1.8% (previous)
• French CPI MoM NSA: -1.2%  vs -0.7% (forecast)  vs 0.5% (previous)
• French PPI YoY: -6.3% Final: vs -5.4% (previous) 
• French PPI MoM: 0.2%  Final: vs  0.2% (previous) 

The data come much lower than expected, which signals the market a possibility of deeper than expected cuts. It is now for EBC to decide on pace of monetary policy.

EURUSD strongly reacts to the news. After the data euro has lost almost 0.15% to US dollar. If the sentiment is sustained, it might test 61.8% Fibonacci retracement level at 1.11249. RSI is approaching oversold at 15 minute inteval, while consolidating in neutral area at D1. MACD at D1 is close to bearish divergence, which is worth to watch.