FX.co ★ Trading plan on October 3, 2017

There is no significant data expected for today, while the forecasted expansion on producer prices (from 2.0% to 2.3%) in the European region will not have any impact towards the market. Certainly, the increase in producer prices of the European Central Bank (ECB). However, the events in Spain shuffled entire events. In the current uncertainty and unpredictability for further developments, the ECB will definitely not take any action. At least when it comes to the tightening of their policies. As for now, it is more likely that the ECB will extend the quantitative easing program.

Hence, as long as the focus is on the relationship between Catalonia and Madrid, the single European currency will continue to remain under pressure. Also, the currency will pull itself and other currencies that are part of the dollar index.

The euro-dollar currency pair continues to decline, overcoming the recent local minimum of 1.1716. It is possible to assume that the "bearish" potential will still be preserved, directing towards the range of 1.1650 / 1.1680, where a 'stop' is already expected.

The pound-dollar currency pair was able to reach the support level at 1.3250 level, where it touches the periodic support. Expect some fluctuations within the 1.3220 / 1.3280 regions, where the "bulls" will try to find a support. In case that the tightening process continues, we expect an expansion of the range.