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Currency Analyst since 2010

Oct. 23: Asian session

EUR/USD rose yesterday to $1.3792 adding about 100 pips. Today euro’s correcting to the downside and touched $1.3765. US dollar fell on Tuesday as data showed that employers added fewer jobs than economists estimated. This adds to the expectations that the Fed may keep its current pace of asset purchases for longer. Today watch German 10-year bund auction, EU consumer confidence, US import price index and HPI. Consult economic calendar at www.fxbazooka.com.

GBP/USD initially reached $1.6256 continuing yesterday’s growth, but then declined to $1.6209. The Bank of England will release at 08:30 GMT minutes of its October meeting when it has left policy unchanged. USD/JPY dropped by almost 100 pips to 97.30 (200-day MA) after having formed a candle of uncertainty yesterday. USD/CHF renewed October lows sliding to 0.9840 yesterday. Today the greenback’s consolidating a bit.

AUD/USD plummeted to $0.9640 after having tested a fresh 4-month high of $0.9758 (200-day MA). Australian Q3 inflation gained 1.2% q/q vs. the expected 0.8% rise. Higher inflation is a hurdle for RBA to cut interest rates further. NZD/USD fell by more than 100 pips, touching $0.8390. New Zealand finance minister English made some bullish comments, saying kiwi could rise on the back of the depreciating US dollar. Westpac said the RBNZ was likely to delay rate rise to April 2014.

USD/CAD keeps fluctuating around 1.0300. The Bank of Canada’s meeting today. At 14:00 GMT it will release overnight rate and the rate statement, at 14:30 GMT – monetary policy report and at 15:15 GMT it will hold a press conference.

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