Euro could fall into the neutral position ECB

In the coming week, event risk will be quite limited for the euro, even if some spills could spur volatility of the currency. On Tuesday, the German ZEW survey - an indicator of investor confidence - should rise slightly to 58.8 for the month of October, the highest since April 2006, 57.7. Such an improvement would be in line with the steady gains that we saw in action in recent months, but at the same time, the consolidation of the DAX below through September 5750 and in early October suggests a change may be minimal.

On Wednesday, the August reading of the Euro-zone industrial production is expected to increase by 1.2 per cent, which would be the first increase in 3 months and the largest increase since January 2008, and seems reasonable given similar improvements we saw in Germany and France.