EURUSD

The pair ended the month of September with additional range trading, little bit leaning lower, as central banks did not cause trouble. PMIs and the ECB’s meeting minutes stand out in the fresh quarter of October.

 

German business confidence moved according to IFO, in line with comparably upbeat PMIs. Despite a rise in caption as inflation, core inflation refuses to bend, creating a trouble for the ECB. Draghi did not say any word of high importance in the month end of September. In the US, consumer confidence comes out at the highest since the year of 2007, but durable goods orders were quite blended. The final GDP read comes out kind of better than expected in the US, but at 1.4 percent, growth stays very slow. Although, there are many troubles brewing in Europe, the pair has shown extreme strength. This might extend for one more week until monetary policy divergence forces the pair to downwards. EURUSD remains neutral this week.

 

GBPUSD

 

The pair was ended the week at 1.2954 levels, almost unmoved from the beginning of the week. There are ten events this week’s on the calendar. In the UK, the current account deficit narrowed in second quarter and take out the forecast, while Final GDP for second quarter was revised to 0.7 percent, edging over the forecast of 0.6 percent. Over in the US, consumer confidence comes out at the highest since 2007, but durable goods orders were blended. Final GDP for second quarter was little bit better than expected in the US, but at 1.4 percent, growth stays weak.

 

The pair opened the week at 1.2977 levels and reached a low of 1.2915 levels, as support held at 1.2902 levels last week. The pair then bounces back and mounted to a high of 1.3058 levels. The pair was unable to consolidate at this level and finished the week at 1.2954 levels. The BoE fell down broad hints in September that it plans to lower rates in coming November. In the US, it’s the conversion theme, as the Fed appears inclined to raise rates this December if a key figure remains steady. So, the greenback should sustain to benefit from monetary divergence. While recent UK data has been good, the markets remain braced for few weak numbers in the Q3 due to Brexit cause. GBPUSD this week’s Outlook remains Bearish. 

 

AUDUSD

 

The pair posted slight gains previous week, as it ended the week at 0.7650 levels. This week’s key events are the Cash Rate and Retail Sales. In the US, consumer confidence reports were taken out the forecast, but durable goods orders were quite blended. There were no significant Australian releases earlier week, which was a key factor in the Aussie showing modest movement earlier week. 

 

The pair unlocked the week at 0.7614 levels. The pair reached a high of 0.7710 late in the week and after that quickly changed its directions, dropping to a low of 0.7588 levels, testing support at 0.7597. The pair finished the week at 0.7650 levels. The Fed didn’t raise rates last September but its stance is hawkish about a rate hike this December, and the markets have priced in a December hike regarding 50/50 currently. The RBA has downplayed any predictions of a rate hike, so monetary divergence will sustain to favor the greenback. AUDUSD this week’s Outlook remains Bearish. 

 

USDJPY

 

The pair posted marginal gains last week, as the pair ended at 101.18 levels. This week’s for JPY was Tankan Indices. In Japan, key indicators didn’t give any positive news. Consumer spending figures declined, although an inflation indicator stands in negative territory. Over in the US, consumer confidence comes out at the highest since the year of 2007, but durable goods orders were blended. Final GDP was little bit better than forecast in the US, but at 1.4 percent, growth stays very slow. 

 

The pair unlocked the week at 100.92 levels. The pair fell to a low of 100.07 levels, as support held firm at 99.98 levels last week. USDJPY after that changed its directions and mounted to a high of 101.84 levels. The pair was unable to consolidate at this level and lost floor, ending the week at 101.18 levels. The BoJ sustains to talk about adopting additional easing if required, but appears unwilling to back up its statement with action. This paves the way for the yen to strengthen and drives closer to the mark levels of 100. With a December rate hike valued in at regarding 50 percent, the key US indicators will be nearly watched by the Fed and might have an important impact on movement of the US dollar. USDJPY this week’s outlook remains Neutral.