29 Oct 2013
Session Recap: USD advances amid risk aversion; focus on Fed meeting
FXstreet.com (San Francisco) - The USD advanced further on Tuesday as risk aversion was the tone of the day. Investors watched weaker than expected economic data in the US and they preferred to be focused on the upcoming FOMC meeting. However, ECB official Nowotny added the pinch of salt as he said the ECB doesn't have tools to fight back the euro strength.
Comments’ initial reaction was a buyers’ party with the pair jumping from 1.3750 to test the 1.3800 area in the EUR/USD. However the pair wasn't unable to keep the level and it fell back to pre-comment levels. The EUR/USD closed Tuesday at 1.3745.
Nevertheless, "more buyers await around 1.3710 in case of further dips, leaving the bullish dominant trend pretty much intact," as FXstreet.com chief analyst Valeria Bednarik said in a recent report. However, "a break below 1.3650 during this Wednesday however, could signal a deeper correction down to 1.3460 before a new leg up surges."
Same story in the GBP/USD as the pair was shocked in between 1.6055 and 1.6100 to finish breaking down to the lowest level since October 17 at 1.6020. The Cable closed the day at 1.6045 with bearish tone in 1 and 4 hours.
Against the Japanese Yen, the USD broke the 98.00 area with the pair resting around 98.20 at least for now. On the other hand, the AUD/USD collapsed to 0.9470, lowest since October 14. The Aussie is under pressure as the RBA Stevens downtalked the Aussie and options expiry will take the scene on Wednesday. A biggest Aussie option strike of $716 million goes off on Wednesday at 0.9500 around 14 GMT, 10 am ET.
Main headlines in the American session:
US: Retail Sales fell 0.1% in September
US September Producer Price Index: MoM -0.1% ; 0.3% YoY
US: S&P/Case-Shiller Home Price Indices grow more than expected in August
Canada: Industrial Product Price (Sep.) fell 0.3% MoM
Spanish yields fall the closest to German yields in nearly 30 months
US: Consumer Confidence deteriorates in October
Nowotny: ECB has no instruments to fight euro appreciation
BOE's Carney: Won't tighten until real traction in recovery
Comments’ initial reaction was a buyers’ party with the pair jumping from 1.3750 to test the 1.3800 area in the EUR/USD. However the pair wasn't unable to keep the level and it fell back to pre-comment levels. The EUR/USD closed Tuesday at 1.3745.
Nevertheless, "more buyers await around 1.3710 in case of further dips, leaving the bullish dominant trend pretty much intact," as FXstreet.com chief analyst Valeria Bednarik said in a recent report. However, "a break below 1.3650 during this Wednesday however, could signal a deeper correction down to 1.3460 before a new leg up surges."
Same story in the GBP/USD as the pair was shocked in between 1.6055 and 1.6100 to finish breaking down to the lowest level since October 17 at 1.6020. The Cable closed the day at 1.6045 with bearish tone in 1 and 4 hours.
Against the Japanese Yen, the USD broke the 98.00 area with the pair resting around 98.20 at least for now. On the other hand, the AUD/USD collapsed to 0.9470, lowest since October 14. The Aussie is under pressure as the RBA Stevens downtalked the Aussie and options expiry will take the scene on Wednesday. A biggest Aussie option strike of $716 million goes off on Wednesday at 0.9500 around 14 GMT, 10 am ET.
Main headlines in the American session:
US: Retail Sales fell 0.1% in September
US September Producer Price Index: MoM -0.1% ; 0.3% YoY
US: S&P/Case-Shiller Home Price Indices grow more than expected in August
Canada: Industrial Product Price (Sep.) fell 0.3% MoM
Spanish yields fall the closest to German yields in nearly 30 months
US: Consumer Confidence deteriorates in October
Nowotny: ECB has no instruments to fight euro appreciation
BOE's Carney: Won't tighten until real traction in recovery