Currency Analyst since 2010

Oct. 2: Asian session

US dollar halted losses against most major peers before a private ADP report forecast to show companies in the US added jobs at a faster pace (12:15 GMT). American lawmakers still need to agree on raising the debt limit to avoid a default after Oct. 17, following the government’s first partial shutdown in 17 years. Ben Bernanke will speak at 19:30 GMT preceded by the FOMC member Rosengren at 16:00 GMT.

EUR/USD made a 60-pip spike up yesterday and is little changed today trading in the $1.3520/10 area. Euro retreated from an 8-month high versus the dollar before the ECB meets today for the first time since President Mario Draghi said he’s ready to inject cash into the banking system. The results of the meeting will be due at 11:45 GMT. The press conference starts at 12:30 GMT. In addition, Italian Prime Minister Enrico Letta is scheduled to address the Senate from 07:30 GMT, which will then hold the vote of confidence, followed later in the day by the Chamber of Deputies lower house.. Spanish unemployment change is released at 07:00 GMT.

GBP/USD spiked up to $1.6260 on Tuesday, but then closed below $1.6200 and is now trading in the $1.6170 area. Watch UK construction PMI at 08:30 GMT (forecast: 60.1: previous: 59.1). USD/JPY fell to 97.60. The greenback is sliding for the second day in a row. USD/CHF spiked down to 0.8990 yesterday, but is now trading around 0.9060.

AUD/USD dropped from $0.9410 to $0.9360. Australian data (building approvals & trade balance) came worse than expected. NZD/USD is trading on the downside in the $0.8220 area after it fell from today’s high at $0.8280, but above today’s low at $0.8192. The RBNZ Assistant Governor John McDermott said that NZ rates should be stimulatory for some time. USD/CAD is testing resistance area of 1.0330/40.

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