US session review:

Data released: 

06:45 GMT Switzerland SECO Consumer Climate (3m) (Q3) -5 -4 -9 

08:00 GMT Switzerland Foreign Currency Reserves (Oct) 434.7B _ 432.4B

11:00 GMT DE Industrial Production s.a. (MoM) (Sep) -0.9% -0.2% 1.6% Revised from 1.4% 

11:00 GMT DE Industrial Production n.s.a. w.d.a. (YoY) (Sep) 1.0% 0.9% Revised from 0.3% 

12:00 GMT UK BoE Interest Rate Decision 0.5% 0.5% 0.5% 

12:00 GMT UK BoE Asset Purchase Facility £375B £375B £375B 

12:45 GMT EMU ECB Interest Rate Decision (Nov 7) 0.25% 0.5% 0.5%

The ECB lowered its benchmark interest rate to 0.25% from 0.5%, as forecast by three of 70 economists in a Bloomberg survey. The rest predicted no change. The ECB expects key interest rates to remain at the current level or lower for an extended period of time, President Mario Draghi said at a press conference after the announcement.

The Bank of England held its key interest rate at 0.5% and its asset-purchase target at 375 billion pounds ($603 billion), matching the median forecast of economists surveyed by Bloomberg.

In the U.S., a Commerce Department report today showed that the world’s biggest economy expanded in the third quarter at a faster pace than forecast. Gross domestic product rose at a 2.8% annualized rate after a 2.5% gain the prior three months, beating the median forecast of economists surveyed by Bloomberg for a 2% advance.

EURO

EUR/USD fell sharply after ECB rates cut. This decision was surprised for investors especially after ECB source told the rate cut was unlikely. EUR/USD fell to 1.3353 from 1.3505 less then for 10 minutes. Now market is waiting for ECB governor Draghi press-conference. ECB cut its rate 25 bp to 0.25%. This decision was surprised for investors especially after ECB source told reporters the rate cut was unlikely. 

EUR/USD got support at $1.3320/00. Bids from Asian central banks has helped EUR/USD higher off $1.3300.

Resistance in the $1.3380 area failed to cap rallies and stop-loss placed at $1.3385/90 triggered the pair up to $1.3420.

Strong offers are eye in the $1.3440 area.

Break and clos under $1.3300 (50% of $1.2755-$1.3832) will target $1.3550/30 and $1.3170 (61.8%).

POUND

BoE left its rate unchanged at 0.5% and Asset Purchase Facility at £375B

GBP/USD said nothing after BoE rate decision was announced.Initial support is at 1.6060. Crucial - at 1.6020. Major resistance stays at 1.6130.

YEN

The yen gained against the US dollar. 

USD/JPY trades back to Y98.00. Strong resistance comes around Y99.60 (Sep 20 higihs) and Y100.60 (Sep 11 highs).Support is around Y97.80 with a stronger one - on the lower bound of the triangle at Y97.30. Break under widens losses to Y96.55 (Oct 7 lows) and Y95.80 (Aug 8 lows).

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