a) EUR/USD - News headlines & growth outlook remains negative. Some of the economic data are turning positive throughout the Euro zone like Spanish GDP (2%), Euro area current account surplus (2.4% of GDP). Political uncertainty over bailouts mainly Greece remains at large.
Important levels to watch out for Resistance - 1.155-1.165 area, Support - 1.1260-1.1285
b) GBP/USD - Data coming out of UK remain mixed, the strong service sector has recently been losing momentum so has the Industrial production (down 0.5% mom, down from previous 1.1% and 2.5% in Aug 2014). Construction has remained positive (PMI 59.1) as well as house prices. Today's inflation data came at -0.9% mom and 0.3% YoY. So far the BOE has played down the deflation fear and discouraged any further easing in monetary policy. This policy outlook and safe heaven flow due to Greek crisis so far kept the pound buoyant.
Important levels to watch out for Resistance - 1.5575 -1.575 area, Support - 1.5260 -1.5190 area
c) USD/CHF - The pair is coming out of its massive appreciation against all its counterparts since SNB blinked on the EUR/CHF floor of 1.20 on 15th January 2015, resulting in a massive market moving 30% devaluation within minutes. Swiss Economy has remained robust over the years resulting in a current account surplus of 12.3%. Despite so, we believe the franc to be bearish against the dollar as the recent appreciation of the CHF and track down by governments on tax evasion is sure to hurt the Swiss economy.
Important levels to watch out for Resistance - 0.9370, 0.9540 & 0.98 area, Support - 0.916
d) USD/JPY - Japan is struggling hard to come out of its more than a decade long deflation through abenomics popularized in the name of Premier Shinzo Abe and unprecedented easing in the form of QE from Bank of Japan. Some of the data points are very encouraging like Machine tools order, but since the sales tax hike by Mr. Abe sent the economy to recession. Latest data yesterday tells that Japan is out of recession officially but economy at a slower pace than expected, just above 2%. We believe the pair to move between the divergent monetary policy and risk aversion sentiment due to its status as safe heaven.
Important levels to watch out for Resistance - 121-122 area, Support - 117-115.7 area


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