EUROPEAN session review: Dollar continues to rise

Data released: 

06:00 GMT Germany Producer Price Index (MoM) (Sep) 0.3% 0.1% -0.1% 

06:00 GMT Germany Producer Price Index (YoY) (Sep) -0.5% -0.7% -0.5% 

The dollar continues to rise versus the euro before a delayed U.S. jobs report is released tomorrow. Sep Nonfarm Payrolls is expected to showe 180K rise in September after 169K in August. Unemployment Rate is expected at 7.3% after 7.3% a month earlier. 

EURO 

Data released showed on a monthly basis the German PPI increased 0.3% in September, compared with the 0.1% drop in August. Analysts pointed to a 0.1% increase. On an annual basis PPI fell 0.5% in September, after dropping 0.5% in August and above expectations of -0.7%. 

Also good enough monthly report from Bundesbank was published. 

EUR/USD holds near support around $1.3650 (23.6% Fibo of the rally from $1.3470). Next support is at $1.3545. Above $1.3700 resistance comes at $1.3714 (January high) and $1.3850 (channel line from Sep 6). 

POUND 

The pound advanced as a report showed a gauge of U.K. house prices increased this month by the most since February. 

The property-website operator Rightmove Plc said home values climbed 2.8% in October after declining 1.5% last month. 

GBP/USD tests support at $1.6140 (recent lows), below - at $1.6060 (Oct 16 high). Support remains at $1.5890 (Oct 16 lows) with a break under widens losses to $1.5820 (Sep 24 lows). Above $1.6260 (Oct 1 high) resistance is around $1.6340 (Jan 2 highs). 

YEN 

Japan posted a ¥932.1 billion ($9.5 billion) trade deficit in September, the 15th consecutive month of deficit. The softer yen supported Japanese stocks, with the Nikkei Average up 0.5%. 

The BOJ raises economic assesment in all 9 regions for the first time in two quarters. Many regions said employment and salaries are improving amid firm domestic demand and gains in factory output. BOJ uses the word “recovery” to describe conditions in all 9 regions for the first time since compiling the report in 2005. 

USD/JPY trades near resistance is near Y98.10/20 (recent high), then - at Y99 (Oct 17 highs). Above Y99.00 resistance is placed at Y99.40 (channel line from May 22). Strong support is at Y97.50. Below losses may widen to Y96.50 (Oct 7 lows). 

DATA AHEAD: 

At 12:30 GMT Canada issues Aug Wholesale Sales, while the US data include Sep CB Leading Indicator and Sep Existing Home Salesat 14:00 GMT.

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