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Dean's Daily FX Update – 10 October 2017
In the Zone
- AUDUSD
- NZDUSD
- USDZAR
Noteworthy News
- The market will be monitoring the Catalan developments this morning. Catalonia are looking to declare independence, whilst Spain are considering suspending the autonomy of Catalonia. This could create some volatility in the EURUSD.
Recap
If you look at the daily charts, you would see that the market was in typical holiday mode as the market just wandered for most of the afternoon. There were no headlines and the President Trump twitter account was rather quiet, especially considering weekend developments over Harvey Weinstein. US politics really is a shambles at the moment and these developments are going to put some serious pressure on the Democrats – hardly the type of press you want leading into Senate elections.
Comments out of the ECB yesterday were a little bit more hawkish than what we were expecting yesterday and this allowed for some strong bids in the EURUSD. It was wondering around the 1.1720 levels yesterday and considering our recent range, it was not an attractive entry for me. The major resistance remains at 1.1785 – 1.1800 for now and I will watch those levels carefully for any short set ups.
The big mover yesterday was the GBPUSD which rallied sharply in the afternoon session, I am always a little cautious on these moves as it could have been exaggerated during the reduced liquidity. The 100 hour MA will be the key level watch today, the sellers will need to see this resistance level to hold if the recent range is to hold.
We should get a better picture this afternoon once the New York desks get back on line after the long weekend.
Important Economic Data out today
10:30 GBP Manufacturing Production
Consensus: 0.2%
Effect: Actual higher than expected is good for the GBP
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