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EUR/USD
The EUR declined 0.07% against the USD and closed at 1.2810. In economic news, the Euro-zone’s consumer price index (CPI) rose 0.4% on a MoM basis in September, at par with market expectations. The US Dollar traded on a higher footing after the initial unemployment claims in the US surprisingly fell to 264,000 in the week ended October 11, marking its lowest level in 14-years. The pair is expected to find support at 1.2723, and a fall through could take it to the next support level of 1.2647. The pair is expected to find its first resistance at 1.2858, and a rise through could take it to the next resistance level of 1.2917. Meanwhile, investors await Michigan’s consumer confidence and housing starts data from the US, as well as the Fed Chief, Janet Yellen’s speech, scheduled later today.
GBP/USD
the GBP rose 0.67% against the USD and closed at 1.6102. Yesterday, the BoE Deputy Governor, Jon Cunliffe stated that new regulations governing banks and financial institutions must be applied consistently across the globe in order to avoid another banking crisis. The pair is expected to find support at 1.5977, and a fall through could take it to the next support level of 1.5874. The pair is expected to find its first resistance at 1.6147, and a rise through could take it to the next resistance level of 1.6214. Trading trends in the Pound today are expected to be determined by economic releases from other countries.
USD/JPY
the USD strengthened 0.40% against the JPY and closed at 106.44. Early this morning, the BoJ Governor, Haruhiko Kuroda expressed optimism on the country’s improving economy and reiterated that the central bank would continue with its quantitative easing policy until its inflation target of 2% is not achieved. The pair is expected to find support at 105.70, and a fall through could take it to the next support level of 105.1. The pair is expected to find its first resistance at 106.71, and a rise through could take it to the next resistance level of 107.11.
USD/CHF
the USD rose 0.08% against the CHF and closed at 0.9424. The Swiss Franc lost ground after Switzerland’s SECO downgraded the nation’s economic growth forecast for 2014 to 1.8% from its previous growth of 2.0%. The pair is expected to find support at 0.9394, and a fall through could take it to the next support level of 0.9356. The pair is expected to find its first resistance at 0.9481, and a rise through could take it to the next resistance level of 0.9530. Amid lack of economic releases from Switzerland today, investor sentiments would be governed by global macroeconomic news.