Currency snapshot (major pairs)

Dollar index trading at 98.65 (+0.03%)

Strength meter (today so far) – Euro +0.12%, Franc +0.06%, Yen -0.31%, GBP -0.12%

Strength meter (since last week) – Euro +0.46%, Franc +0.03%, Yen -1.13%, GBP +0.02%

EUR/USD –

Trading at 1.092

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support                      

• Long term – 1.06, Medium term – 1.08, Short term – 1.08

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• Private loans in September grew by 1.8 percent and money supply rose by 5 percent.

Commentary –

• The euro is likely to tread water at these levels as the focus turns to FOMC next week. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. stop loss revised to 1.13

GBP/USD –

Trading at 1.222

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.25, Short term – 1.24

Economic release today –

• GDP grew by 0.5 percent in the third quarter, up 2.3 percent from a year ago.
• CBI distributive trade survey rose to 21 for October.

Commentary –

• The pound failed to gain grounds despite better than expected GDP numbers. The pound has reached our target 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 104.8

Trend meter –

• Long term – Sell, Medium term – Range/ Sell, Short term – Sell

Support –

• Long term – 91, Medium term – 98, Short term – 98

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• Tokyo and national CPI numbers will be released at 23:30 GMT, along with unemployment report.

Commentary –

• The yen is the worst performer of the week and still the only counter against the dollar. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –

Trading at 0.993

Trend meter –

• Long term – Buy, Medium term – Range, Short term – Range/Sell

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.995

Economic release today –

• NIL

Commentary –

• Franc found support around parity, but struggling to gain much ground. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term. However, this call is under threat currently. We could soon revise the call.