Important events today:

14:00 UTC – US: consumer sentiment index from the University of Michigan.

Federal Reserve Bank of San Francisco President Mary Daly told Yahoo! Finance that yesterday’s US inflation release is “good news” for families and businesses, but it is too early to conclude that the consumer price index will quickly return to pre-recession levels.

As for the Fed’s next meeting, Daly said there is still a lot of information to evaluate before it, so she disagrees with many investors who believe the regulator will not raise interest rates again and will begin easing monetary policy early next year. “We’re a long way from talking about lowering rates,” the head of the FRB San Francisco clarified. For the dollar this is a moderately positive signal, because the longer the Fed keeps rates at current levels, the more profitable it is for banks and investment funds to buy short-term U.S. government bonds.

Recommendations: Sell 1.1027/1.1050 and TP 1.0945.