Well yesterday’s Fed meeting, delivering a less than expected tone and leaving the door open to start its gradual QE exit at any time. Further downside pressure also came in overnight after Bank of Austria’s E.Nowotny hinted that more liquidity would be in the pipeline after the expiration of the current 3-year LTROs. Data wise, German Retail Sales came in on the softer side, contracting 0.4% during October; in the same direction, consumer confidence gauged by Gfk dropped to 7.0 for the month of November. Later on during the European morning, inflation figures in the bloc are due, with consensus expecting an annual increment of 1.1% in October. So what to do next... EURUSD The move lower happen thanks in part to the FOMC and Nowotnys comments. Look for a bounce this morning to be sold off for 1.3685. GBPUSD Looks to be caught in 2 minds this morning, however i still favour the move towards 1.5950. USDJPY I still think we have plenty of upside potential here. However beware of the 97.90 support being broken early doors. AUD Supports at 0.9450 held well, so look for a move higher towards 0.9580 and possibly higher. USDCAD Look to sell the 1.0500 level for lower towards 1.0350.
Posted on: Thu, 31 Oct 2013 09:16:25 +0000
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