Data released yesterday showed that Euro Area headline inflation data fell back into negative territory in September, contracting at a -0.10% annualized pace. The weakness in oil prices continue to be a drag on inflation in the Euro Area with countries such as Spain and Germany posting deflation readings. With inflation so subdued, markets are rife again with expectations of the ECB expanding its QE program. Crude oil prices have largely stabilized in the past few weeks with the sharp declines becoming more restrained, offering some hope for inflation to pick up in the coming months ahead. EURUSD has since reversed its gains and confirmed the bearish reversal just shy of the 1.1300 handle, breaking below the 1.1200 handle. Further declines are expected with a potential to eventually test the next main support level at 1.1100.