One Stop Centre of Financial Market Trading blog

Previous session overview

The dollar slid early Monday against most other major currencies after the Group of Seven industrial powers did nothing to arrest its slide, but the currency clawed back some of its declines later in extremely thin Asian trade.

The dollar's tone remained weak, even though it recovered modestly from a 15-year low against the yen and an eight-month low against the euro, after weak U.S. job data Friday boosted expectations that the Federal Reserve will ease policy further, and after the G-7 and International Monetary Fund made no headway in what are being called the global "currency wars."

The euro rose to USD1.4012 after China set the yuan's fixing at a record low. The greenback remained weaker against most Asian currencies.

The U.S. dollar index, a measure weighing the currency against a basket of currencies, recently traded at 76.954, off 0.3%.

The Pound strengthened against the US dollar which was broadly sold off after weak US employment data reinforced views that the Federal Reserve could start quantitative easing as early as next month. News in the US took the spotlight away from speculation of additional quantitative easing by the Bank of England.

The Australian dollar traded just off its post-float highs against the U.S. dollar late Monday as currency traders picked up where they left off last week, selling the U.S. dollar.

Market expectation

Major currency pairs, including the euro and sterling, are narrowly mixed on Monday as investors sort out a barrage of comments from officials that signal a lack of international consensus on how to cope with currency imbalances.

Traders said the common currency may fill the technical gap between USD1.3935-USD1.3950 formed at the morning's higher opening. The euro was at USD1.3960 at 0607 GMT.

European stocks are expected to open slightly higher Monday, with traders taking heart from a strong close in the U.S. Friday, when the Dow Jones Industrial Average closed above 11,000 for the first time in almost six months.

The next key technical support for USDCHF below the 0.9500 level is at 0.9078, according to technical analysts. Upside resistance is seen at 0.9739, with 0.9918 the target for a breakout from its current trend.

Oct 11	Count.	Event	For	Unit	Imp.	Act.	Cons.	Prev.
00:00	JP	Market Holiday- Sports Day
00:00	US	Market Holiday- Columbus Day (Nyse, Amex and NASDAQ open)
00:00	CA	Market Holiday- Thanksgiving Day
00:00	GB	BoE Deputy Governor Tucker speaks at the Institute of International Bankers
00:00	SE	Governor Ingves speaks on "How the Riksbank handled the financial crisis"
00:00	GB	BoE Governor King speaks at the Caplin Conference in Washington
06:45	FR	Manufacturing Production	Aug	% m/m			0.4	1.4
06:45	FR	Manufacturing Production	Aug	% y/y			3.7	5.9
07:30	DK	CPI	Sep	% y/y				2.3
07:30	DK	HICP	Sep	% m/m				0.5
07:30	DK	HICP	Sep	% y/y				2.3
07:30	DK	CPI	Sep	% m/m				0.3
12:00	US	Federal Reserve Bank of New York President Dudley speaks at the Institute of International Bankers Breakfast
13:00	SE	Deputy Governor Ekholm comments on research report "Europe and Global Imbalances"
18:45	US	Federal Reserve Bank of San Fransisco President Yellen gives speech on "Macroprudential Supervision and Monetary Policy in the post crisis world"