Forex today: Columbus Day holidays, dollar trades the froth of overnight sessions, down -0.1%
There were a number of holidays today, so markets were stable although the pound was rebounding significantly in the Asiana and European markets, consolidating in the US.
GBP/USD opened 1.3093 in Asia and made a high of 1.3183 in the absence of political and Brexit headlines criticizing PM May. Bears closed a good amount of offers and profit taking ensued while bulls picked up the pound cheaply in what some analysts regard as undervalued.
The Treasury market was closed and there wasn't any data from the US session, the DXY was changing hands in the froth of the previous sessions, ending -0.1%. The EUR was moving higher from 1.1720 to 1.1756 as Spain German data continues to beat expectations poking the embers of ECB tapering expectations. USD/JPY drifted up from 112.55 to 112.75 while 112.99 Fibo remains a hard nut for the bulls to crack and stay above.
As for the antipodeans, after the softest Caixin China Services PMI (50.6 v 52.7 last) in 21 months in overnight trade, the Aussie was ranging between 0.7748 and 0.7770 while the Kiwi picked up some ground from 0.7064 and 0.7086.
Key data ahead in Asia:
Event risk for markets is minor today: NZ electronic retail sales, Australia business confidence (NAB), and US small business confidence (NFIB). RBA’s Debelle, and FOMC’s Kashkari provide central bank comments.
Key notes:
- British PM May: Don't want to accept existing economic model with EU post-Brexit
- Week ahead - Rabobank
- US Dollar parked around 93.60
- EUR/USD edges higher to mid-17s on ECB's Lautenschlaeger's remarks
- Yen subdued in absence of US treasury market - BBH
- ECB's Lautenschlaeger: Low interest rates are justified; have side effects
- Wall Street ends quiet session slightly lower