US Dollar consolidates as profit taking sets in! 

  • The Dollar Traded slightly stronger yesterday however remained in a fairly tight consolidation range as profit taking from Friday's selling allowed the USD to gain steadily throughout most of the day. Fed Chief Bernanke speaking in a TV interview stated that Unemployment remained stubbornly high and that it was possible to expand QE past the 600bn announced. In US stocks the DJIA traded -19 points lower closing at 11362 and the S&P traded -1 point lower closing at 1223. Looking ahead, October Consumer Credit is previously at 2.15bn.

    The Euro was not helped at the start of the European session by the downgrade of Hungary's credit rating or by disagreements within the EU in regards to the expansion of the Bailout fund. Support was found at 1.3250 before recovering in the US Session. EUR/USD traded with a low of 1.3245 and a high of 1.3423 before closing at 1.3320. Looking ahead, October German Industrial Orders is forecast at 2% vs. -4% m/m. 

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.3250 with a preference to enter into Long positions at 1.3260
  • § The USDJPY pivot point is at 83.15 with a preference to enter Short positions at 82.70               

Today's calendar and market movers:

  • § United Kingdom Industrial output for October expected at 0.25%
  • § United Kingdom Manufacturing Production for October expected at 0.3%
  • § Germany Industrial Orders for October is forecasted at 2%
  • § Canada Bank of Canada Rate decision expected to remain unchanged at 1% 

Equity Markets: 

  • US equities closed negative on Friday with the S&P500 down -0.13% and the DJIA down -0.17%. The European bourses were mixed with the FTSE up 0.43% the DAX and the CAC closing up at 0.10% and down -0.04% respectively. The NIKKEI and the HSI at the time of writing is -0.26% and 0.54% respectively.