London Forex Report: USD Doesn’t Buy Fischer Rate Talk

EURUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: EUR reached its highest level in three weeks at 1.1387, posting its second weekly gain in a row versus the greenback. Traders await major data releases this week such as US retail sales, September’s PPI and CPI figures, while consumer inflation numbers and trade balance data of Eurozone will also be published

Technical: price is pressuring the upper end of the recent rnage the sustained breach of 1.1330 now targets 1.1460 as the next upside objective. Look for 1.1280/1.13 to provide intraday support for the advance

Interbank Flows: Bids 1.13 stops below. Offers 1.14 Stops above.
Retail Sentiment: Bearish
Trading Take-away: Buy pullbacks against 1.1280 targeting 1.15

eu2015-10-12 07_28_18-NetDania - NetStation

GBPUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: GBPUSD posted the first weekly gain in three weeks amid broad USD weakness. This week’s data highlights include market-sensitive data in the form of September inflation statistics which could show a slippage of the annual rate back into negative territory and updated labour market figures that could reveal an acceleration in the headline average earnings growth rate. The headline unemployment rate looks set to hold steady at 5.5%.

Technical: 1.54 offers cap advance for now. While intraday downside reactions are support towards .153 near term upside remains in tact, with 1.55 targeted as the next upside objective.

Interbank Flows: Bids 1.5260/80 stops below. Offers 1.54 stops above
Retail Sentiment: Bearish
Trading Take-away: Stay long for 1.55

gu2015-10-12 07_28_55-NetDania - NetStation

USDJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: As nearly all major central banks adopt easing monetary policies, USDJPY rose on an improvement in risk sentiment in markets. Since the BOJ has adopted a wait-and-see approach on its monetary policy, expect USDJPY to remain range-bound till the next policy meeting held on 30 October. Japanese Finance Minister Taro Aso said employment and income environment has improved due to the three arrows of Abenomics. He believed deflation would be overcome very soon.

Technical: Continues to coil in contracting range, play range 121.50 the offer and 118.50 the bid until broken.

Interbank Flows: Bids 118.50/30 stops below. Offers 121.50 stops above
Retail Sentiment: Neutral to bullish
Trading Take-away: Sidelines for now

uj2015-10-12 07_29_27-NetDania - NetStation

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: Week ahead has BOJ minutes; September preliminary machine tool orders (Tue); Sep PPI (Wed); Aug IP, capacity utilization, tertiary index (Thu). Markets looking for the BOJ to add to its easing measures at end of October meeting (the BOJ semi annual outlook report will be released at the same time) given the lack of inflationary pressures and sluggish growth.

Technical:  The close above 136 opens a retest of upper end of the recent range and a retest of offers at 137 next. Remain bullish while 136 supports intraday downside reactions

Interbank Flows: Bids 136 stops below. Offers 137 stops above
Retail Sentiment: Neutral to bearish
Trading Take-away: Sidelines for now

ey2015-10-12 07_30_00-NetDania - NetStation

AUDUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: Higher commodity prices, stronger global stock markets and weaker US economic figures have supported the Australian dollar throughout last week. In particular, Zinc prices surged 12% after Glencore’s announcement of massive zinc production cuts, further extending the AUDUSD rally.The AUDUSD printed 0.7344, a seven-week high, last Friday. Markets will pay attention to a series of data release from China, including Consumer Price Index, Trade Balance, and Foreign Direct Investment.

Technical: Offers at equality corrective objective at .73 eroded. Near term bullish bias remain intact while .73 supports intraday downside reactions. Bulls now target .7400 as the next upside objective

Interbank Flows: Bids .7300 stops below. Offers .7400 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pull backs against .7300 targeting .7400

au2015-10-12 08_02_35-NetDania - NetStation

USDCAD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bullish

Fundamental: CAD reversed post data gains, after the unemployment rate in September rose to 7.1 percent from 7 percent as more people entered the labour force. 12,100 jobs were created in September, but largely on part-time job gains which are consistent with an economy growing at a moderate rate. Broad dollar sales environment and strong oil momentum suggest that bears hold the advantage and next support is seen at 1.2850

Technical: Near term bearish tend remains intact as intraday resistance at 1.2960 contains intraday upside reactions bears target 1.2850 bids as the next downside objective

Interbank Flows: Bids 1.289 stops below. Offers 1.2960 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uc2015-10-12 08_04_16-NetDania - NetStation

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