EUROPEAN session review: Dollar trades mixed

Data released: 

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 trades mixed. The extent of risk-off moves has so far been limited as investors count on another 11th hour agreement, but the quickly approaching debt ceiling negotiations will eventually test market nerves. The closer to this date without a successful resolution to the shutdown, the more likely we are to see a risk-off trade accelerate 

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. 

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

However later the euro fell amid correct move after setting 8-moth high. 

EUR/USD trades near $1.3590. 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 

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%. 

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 tryes to fall below $1.6200. 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 stays near days maximum. 

USD/JPY current rebound above 97.13 low should be considered corrective in nature, thus preceding next leg downward, to 95.75 support zone. Crucial on the upside is 98.71 high. Initial intraday support is at 97.50. 

DATA PREVIEW 

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

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