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Wednesday, October 7th
USD/JPY was slightly weaker as Bank of Japan voted to keep its current monetary base target steady in an 8 to 1 vote on Wednesday. There has been speculation the BoJ may be considering further easing, though the board has contended that underlying inflation is rising and a slump in factory output is not serious enough to derail the path to a modest economic recovery and 2% inflation. The support and resistance levels are located at 119.33 and 121.01, respectively.
GBP/USD is higher ahead of Manufacturing Production data from UK. There will be more significant news from Britain this week, including interest rate decision and trade balance, which altogether, might cause the trades in this instrument to be no less volatile than the previous weeks. Moreover, without any important economic news expected from the US, the cable will be solely driven by fluctuations in GBP. Current support and resistance levels are located at 1.5107 and 1.5364, respectively.
EUR/USD is lower after yesterday’s rise currently trading at 1.1258. The pair gained in course of yesterday’s trade amid wider than expected US Trade Balance deficit and downbeat forecasts from IMF on global economy growth over the next year. Today is expected to be a relatively quiet trade for the euro, without any news on the economy calendar. The support and resistance levels are located at 1.1166 and 1.1387.
USD/CAD is broadly lower for the sixth consecutive session. The pair declined to its current level of 1.3018, which is very close to the key support level located at 1.3010. Having passed that price level, the analysts are likely to hold heated discussion over the trend reversal. Fundamental data from Canada indicated that both Trade Balance and Ivey PMI were lower than expected. Investors are now watching the number of issued building permits in Canada later in the day. Current support and resistance levels are located at 1.3010 and 1.3123, respectively.
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