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USD/JPY Technical Analysis 13 October 2008 Market Moving News: USD/JPY - Oct 13 Forex and Dow Jones recommended levels More USD/JPY

A deteriorating economic activity seems to e taking a toll on the 15-nation economy as well, the PMI Services dropped unexpectedly today in the Euro Zone marking a possibility for a slowing European economy and will make the rate decision due next Thursday, and expectations are for the ECB to hold their rates steady at 4.00%.

On the other hand the U.K reported today a better than expected performance by the Services sector, and investors are more convinced now that BOE will only cut their rates by a quarter basis points only.

The U.S dollar acquired strength against majors on the news, as the slowing economic activity in the United States might have hurt other economies too as the global growth is expected to slowdown as a result.

The Euro recorded its highest today at 1.4834 and dropped afterwards on the worse than expected PMI Services as well as the worse than expected Retail Sales to set a low of 1.4666.

The Pound settled against the Dollar after the upbeat news from the Services sector; which almost eliminated expectations of a half percentage point cut and investors are locking in a quarter basis points cut, the Pound recorded a high of 1.9762 and a low of 1.9664 so far, the Pound strengthened against the Yen and is being traded around the critical level at 211.80, the GBP/JPY pair recorded a high of 212.09 after recording a low of 210.35 earlier today.

The Yen declined against both the Pound and the Dollar but managed to incline against the Euro, the USD/JPY pair recorded a high of 107.72 after recording a low of 106.58.

The Reserve Bank of Australia decided to hike their benchmark interest rates by a quarter basis points to 7.00% to tame rising inflation but the BOA stressed that inflation rates are expected to drop later this year.