EUROPEAN session review: market awaited for US NFP report

Data released: 

06:00 GMT Switzerland Trade Balance (Sep) 2,494M 2,104M 1,853M 

06:00 GMT Switzerland Exports (MoM) (Sep) 16,912M _ 14,710M 

06:00 GMT Switzerland Imports (MoM) (Sep) 14,418M _ 12,851M 

08:30 GMT UK Public Sector Net Borrowing (Sep) £9.368B £10.400B £10.808B 

Investors opted to stay on the sidelines ahead of the delayed U.S. nonfarm-payrolls report due later in the day. Experts said, with the markets building up short dollar positions, an outsized move could be seen in the event of a very strong number. But this would most likely be transitory as markets would see little impact on Fed policy when two months of distorted jobs data are likely to be seen ahead 

EURO 

The euro is remaining at shouting distance from Friday’s highs. 

EUR/USD holds below Friday’s high on $1.3700. Above resistance comes at $1.3714 (January high) and $1.3850 (channel line from Sep 6). Closest support comes around $1.3650 (23.6% Fibo of the rally from $1.3470) and $1.3545. 

POUND 

BOE's Bean said today that there are signs UK recovery gaining traction. 

Data released showed UK Public Sector Net Borrowing was at £9.368 billion in September, following £10.808 billion registered in August. Analysts expected £10.400 billion. 

GBP/USD holds at $1.6130. Above $1.6260 (Oct 1 high) resistance is around $1.6340 (Jan 2 highs). Support comes 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). 

YEN 

The yen weakened a bit vs the dollar ahead of US data. 

USD/JPY trades above Friday’s lows and strong support at Y97.50. Below losses may widen to Y96.50 (Oct 7 lows). Minor resistance is near Y99 (Oct 17 highs). Above Y99.00 resistance is placed at Y99.40 (channel line from May 22). 

Source of information>>

More information>>