EUROPEAN session review: Dollar rose amid correct move

Data released: 

08:00 GMT Germany IFO - Expectations (Oct) 103.6 104.5 104.2 

08:00 GMT Germany IFO - Business Climate (Oct) 107.4 108.0 107.7 

08:00 GMT Germany IFO - Current Assessment (Oct) 111.3 111.6 111.4 

08:30 GMT UK Gross Domestic Product (YoY) (Q3) Preliminar 1.5% 1.5% 1.5% 

08:30 GMT UK Gross Domestic Product (QoQ) (Q3) Preliminar 0.8% 0.8% 0.7% 

The main currencies started to correct recent growth finally. 

In Germaby the Ifo Business Climate Index fell to 107.4, missing analyst expectations and marking the first decline in six months. The Ifo expectations and current-conditions surveys also unexpectedly slipped in October. 

In the U.K., the Office for National Statistics said the British economy grew by 0.8% in the third quarter, up from 0.7% in the previous three-month period. 

EURO 

The euro is under some selling interest now after the German IFO series disappointed investors as all of the IFO components came in below the median and September readings. 

EUR/USD holds below session high on $1.3830 with resistance comes at $1.3900 (channel line from Sep 6). Closest support comes at $1.3800, below - at $1.3740 (Oct 23.lows), then - around $1.3650 (Oct 21 lows) and $1.3560 (channel line). 

POUND 

The pound declined despite strong GDP data. Investors concerned about real wage dropping that would have negative impact on consumption. 

GBP/USD trades around $1.6170. Support comes at $1.6060 (Oct 16 high), then - at $1.5890 (Oct 16 lows) with a break under widens losses to $1.5820 (Sep 24 lows). Above $1.6250/60 (Oct 1 high) the GBP may challenge resistance around $1.6340 (Jan 2 highs). 

YEN 

The Japanese yen has compensated all of morning gains. 

USD/JPY trades near Y97.40. Below Y97.00 support comes at Y96.55 (Oct 7 lows) and Y95.80 (Aug 8 lows). Resistance is around recent highs on Y98.40 and then - at Y99.25. 

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