Daily Market Review 16 of October
The European and the US markets surge yesterday after a stronger than expected Earnings reports and better-than-expected U.S. retail sales data lifted market sentiment, although uncertainty over a bailout for Spain continued to weigh.

The US Commerce Department reported yesterday that retail sales rose by a seasonally adjusted 1.1% in September, outpacing market calls for a 0.8% increase.

Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.

Core retail sales, which exclude automobile sales, rose by 1.1%, beating expectations for a 0.6% increase.

Rising retail sales over time correlate with stronger economic growth especially in the US were 70% of its economy is driven by its own consumers.

Stronger-than-expected earnings from the banking giant Citigroup also kept the balance of risk to the upside, with banking stocks leading a bounce across U.S equities

However, investors remained cautious as Madrid did not request financial aid over the weekend and a request for a bailout is now seen as increasingly unlikely ahead of regional elections on October 21.

Early today, Asian stocks rose as a reaction to yesterday US retail sales and growing expectations that the Reserve Bank of Australia may loosen its monetary policy to spur more growth also help the overall positive sentiment as well.

Today Economic Calendar:
08:30-UK-Core Consumer Price Index (YoY) (Sep)               
08:30-UK-Consumer Price Index (YoY) (Sep)   
09:00-EMU-Consumer Price Index (YoY) (Sep)   
09:00-EMU-Consumer Price Index - Core (YoY) (Sep)   
09:00-EMU-ZEW Survey - Economic Sentiment (Oct)   
09:00-DE-ZEW Survey - Economic Sentiment (Oct)   
n/a-UK-BOE Inflation Letter           
12:30-US-Consumer Price Index (YoY) (Sep)

EUR/USD Risk appetite continues this morning as well, with the bloc currency pushing beyond the psychological resistance of 1.3000.

The better than expected data yesterday and rumors about the imminence of a Spanish bailout are fueling the markets today.

On the technical perspective, the bloc currency continues its sideways movement in a range between 1.2803 and 1.3071. Support is at 1.2803. As long as this level holds, the price action from 1.3171 is treated as consolidation of the uptrend.