Market Brief
The USD has recouped some losses today as equities put in a mixed performance and stale USD shorts were cleared from the market on technically-driven momentum. The morning's release of European Industrial Production was broadly balanced in effect on risk sentiment as the September reading missed forecasts at 0.2% MoM (0.5% expected), but the reading from the month prior was revised higher from 0.9% to 1.2%. The afternoon session was equally uneventful as US claims data was slightly better than expected on aggregate, but FX markets seemed more concerned with the 3-day head-and-shoulders pattern discernable on most USD currency pairs, and the technical break of the neckline which would signal further USD upside to come. EURUSD finally exhausted support at 1.4950 and has since dipped to 1.4865 lows, just above where the 12-month uptrend and major support comes in. Meanwhile gold has retraced back to $1114 levels after rising to new highs at $1123 at the start of the day, and silver has also pared back to $17.50 as the USD has strengthened.

In the coming Asian session we can expect Japanese Industrial Production and Consumer Confidence; but we feel there is limited scope for JPY strength on the back of these figures. Just this morning, Finance Secretary Furumoto was quoted as saying that he cannot be optimistic about Japan's outlook, and that the Japanese economy doesn't warrant exit strategies at this stage.

Tomorrow the main data release (and key focus for the week) will be Eurozone Q3 GDP - a data point that will be one of the few remaining significant drivers of risk sentiment going into year end. With risk-asset rallies feeling a little fatigued during this week of light data, a poor number may well trigger a more aggressive correction than has currently played out. Expectations are looking for a 0.5% expansion after last quarter's -0.2% reading.

Currency Tech
R 2: 1.5063
R 1: 1.4950
CURRENT: 1.4860
S 1: 1.4860
S 2: 1.4810

R 2: 1.7041
R 1: 1.6843
CURRENT: 1.6530
S 1: 1.6405
S 2: 1.6240

R 2: 92.50
R 1: 90.75
CURRENT: 90.40
S 1: 89.20
S 2: 88.85

R 2: 0.9475
R 1: 0.9370
CURRENT: 0.9235
S 1: 0.9195
S 2: 0.9090

R 2: 1.0780
R 1: 1.0608
CURRENT: 1.0530
S 1: 1.0420
S 2: 1.0380