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Monday, October 17th
GBP/USD
Current price: 1,2160 (-0,2%)
Session range: Open 1.2155 High 1.2198 Low 1.2150
Latest trend: Bearish
Expected trend: Bearish
Daily volatility: High
Support and resistance levels: S. 1.2110 R. 1.2296
Main drivers: US Industrial Production
Overview: The GBP/USD cross has opened today with 30 pips gap thereby attracting major part of investors’ attention. The pound continues to wobble near its record low level remaining under strong selling pressure as rumors of “hard Brexit” are still influencing the market. Moreover, the latest comments from French President F.Hollande and German Chancellor A.Merkel are also adding fuel to “hard Brexit” fears. Meanwhile, growing probability of this year Fed rate-hike is accelerating US bulls limiting pound’s chances of immediate recovery.
EUR/USD
Current price: 1,0986 (0,1%)
Session range: Open 1.0972 High 1.1001 Low 1.0963
Latest trend: Bullish
Expected trend: Bearish
Daily volatility: High
Support and resistance levels: S. 1.0910 R. 1.1086
Main drivers: EU CPI, US Industrial Production, ECB President M.Draghi’s Speech
Overview: Today the euro has recovered a smile against its American peer bouncing-off its three-month lows and getting closer to psychological mark of 1.1000. Seems that USD bulls are out of steam at the start of this week as traders are taking profit off the table after strong rally witnessed last week. Despite the current recovery, the major remains under bearish pressure in light of increasing chances of interest rate-hike by Fed on its meeting in December, 2016. However, the ongoing talks of cutting the ECB monetary policy easing program are supporting the pair allowing the euro to take some advantage over the dollar. Across the pond, the Eurozone’s CPI will take center stage this Monday with ECB President M.Draghi and FOMC Member S.Fischer speeches scheduled later in NA session.
USD/JPY
Current price: 104.05 (-0.1%)
Session range: Open 104.35 High 104.37 Low 103.92
Latest trend: Bullish
Expected trend: Bearish
Daily volatility: High
Support and resistance levels: S. 103.21 R. 104.95
Main drivers: US Industrial Production
Overview: The dollar/yen pair is hovering near 104 level at the beginning of this week posting its daily gains 104.37. Following market’s sentiment the yen stays weaker against its American counterpart as raising chances of this year Fed hawkish move are supporting US currency. Adding to that, disappointing Japanese Industrial Production on the monthly basis released in Asia is helping the pair to hold its current level. Nothing much is scheduled for the pair so it will follow the global market’s direction.
USD/CAD
Current price: 1.3164 (0.2%)
Session range: Open 1.3126 High 1.3184 Low 1.3126
Latest trend: Bullish
Expected trend: Bearish
Daily volatility: Moderate
Support and resistance levels: S. 1.3031 R. 1.3271
Main drivers: US Industrial Production
Overview: The pair has recovered part of its losses this Monday after two consecutive south directed sessions. For two past trading session the pair has lost more than two cents after facing strong resistance near the region of 1.3100. Today Canadian dollar has lost its upbeat mood against its neighbor as softer oil price are dragging the loonie lower at the start of this week. Only secondary data ahead today so the oil price will remain as a key driver for the pair.
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