Is this the judgment day?

The euro depreciated against most of its major counterparts as the world begs for decisive action from the European leaders’ summit today. There is an urgent need for the EU leaders to persuade the markets, that they can prevent contagion of financial distress and evade a banking crisis. The eurozone Finance Ministers meeting for today was cancelled, leaving investors wondering if this was due to overall disagreement or agreement. Versus the US dollar, the single currency, retraced to 1.3899 from 1.3920. Against the Swiss franc, the euro slid further to 1.2212 from 1.2248. Against the Japanese yen, the euro dropped to 105.80 from 106.32.

The US dollar was softer against a basket of currencies as consumer confidence came unexpectedly weak. Against the Swiss franc, the US dollar dropped to 0.8771, from 0.8798. Against the Japanese yen, the greenback recorded a new post Second World War low at 75.74, opening at 76.20 and closing at 76.12. This caused the Japanese Minister of Finance, to announce that a 76-77 USDJPY exchange rate level is inappropriate, stipulating that an intervention similar to the Swiss Central Bank’s step, is difficult to apply, given the difference in size of currency’s trade volume.

The Australian dollar moved lower to 1.0421 from 1.0460 against the US dollar. This came in as risk appetite was limited and markets priced a potential rate-cut in November. The British pound rose to a two-month high at 1.6038, opening at 1.5997 and closing at 1.6001 against the US dollar. The Bank of England Governor testified to the Parliament, noting that the Monetary Policy Committee decision for asset purchases in October was based on the persistent financial markets volatility.

Oil prices rallied to 92.37 dollars a barrel from 91.34. Gold also advanced higher to 1701.40 dollars an ounce from 1651.16. Silver followed suit rising to 32.9775 dollars an ounce from 31.64.

 OUTLOOK  ?

 

Pivot

Preference1

Sentiment2

 

EURUSD

1.3850

LONG @ 1.3860

§  39%  of deals buy EUR

 

USDJPY

76.30

SHORT @ 76.25

§  96%  of deals buy USD

 

GBPUSD

1.5950

LONG @ 1.5960

§  33%  of deals buy GBP

 

AUDUSD

1.0440

SHORT @ 1.0440

§  48%  of deals buy AUD

 

GOLD

1690.00

LONG @ 1690.00

§  54%  of deals buy GOLD

 

OIL

92.00

LONG @ 92.00

§  29%  of deals buy OIL

1data generated by Trading Central™, 2data obtained from easy-forex Inside Viewer™

CALENDAR ?     

Currency

Time (GMT)

Event

Forecast

 

USD

12:30

Durable Goods Orders for September

-0.9%

 

USD

14:00

New Home Sales for September

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