ASIA session review: Dollar falls to 8-month low versus Euro

Data released: 

01:00 GMT China Non-manufacturing PMI (Sep) 55.4 _ 53.9 

07:00 GMT UK Halifax House Prices (MoM) (Sep) 0.3% 0.5% 0.4% 

07:00 GMT UK Halifax House Prices (3m/YoY) (Sep) 6.2% 6.4% 5.4% 

07:48 GMT France Markit Services PMI (Sep) 51.0 50.7 48.9 

07:53 GMT Germany Markit Services PMI (Sep) 53.7 54.4 52.8 

07:58 GMT EMU Markit Services PMI (Sep) 52.2 52.1 50.7 

07:58 GMT EMU Markit PMI Composite (Sep) 52.2 52.1 51.5 

08:28 GMT UK Markit Services PMI (Sep) 60.3 60.0 60.5 

The dollar slid to the weakest level in eight months versus the euro as the U.S. government’s partial shutdown added to concern that growth will slow and prompt the Federal Reserve to delay tapering monetary stimulus. 

EURO 

The euro rose a bit after core euro zone PMI prints were in general better than forecasts. 

Dara released showed the services PMI results in the euro area, France and Italy surprised investors in September while the German reading missed the median. 

Later report said EU Retail Sales improves to 0.7% in August versus +0.2% expected. 

EUR/USD has pierced Monday’s high of $1.3587 after Italy’s Letta win confidence vote. Above resistance comes at $1.3620 (recent highs) with the stronger resistance is near yearly high on $1.3712. Initial support remains at $1.3530 (support line from Sep 6). Below $1.3460 (Sep 25 low) support is around $1.3400. 

POUND 

The pound looks higher. 

Data released showed UK Halifax House Prices grew 0.3% in Septemnber, following a 0.4% increase the previous month. Analysts expected more growth of 0.5%. 

On an annual basis Halifax House Prices climbed 6.2% in September, after rising 5.4% in August and below consensus of +6.4%. 

The sterling continued ralling after the Services PMI in the UK economy surpassed expectations at 60.3 vs. 60.0, although the print came in lower than August’s 60.5. 

GBP/USD consolidates below Monday’s high at $1.6250 (initial resistance). Initial support is near $1.6150 (channel line from Sep 6), then - at $1.6000 (Sep 26 lows). Above $1.6250 resistance is around $1.6340 (Jan 2 highs) and $1.6480 (channel line from Sep 6). 

YEN 

The yen fell versus the dolla Thursday. 

USD/JPY recovered to Y97.80 from yesterday’s lows on Y97.15. Initial resistance comes at Y98.70 (Tuesday’s high), then - at Y99.20 (Thursday’s high) and Y99.65. Below Y97.15 support is around Y96.80 (Aug 17 lows) and Y95.80 (Aug 8 lows). 

DATA PREVIEW 

At 12:30 GMT US release Sep 27 week Initial Jobless Claims with Aug Factory Orders and Sep 

ISM Non-Manufacturing PMI are scheduled to release at 14:00 GMT.

Source of information>>

More information>>