EURUSD

Three consecutive weeks of decline, EURUSD traded almost unchanged today at 1.0861 after USD index traded slightly higher today. After cutting the rates by ECB last week, traders are likely to shift the focus to more macro numbers in this week that include manufacturing services PMI and ECB President Lagarde speech on Tuesday.

As expected, the last major support remained solid, as price action keeps advancing, the next target will be at a higher level 1.0896. The weakness of EZ economy was mostly priced in.

USDJPY

USDJPY traded weaker this morning at 149.23 after it fell by 0.30 in a week. There will be no major economic releases from Japan for today. In the meantime, traders are likely to rely on the technical levels before releasing Tokyos inflation on Thursday. As long as US 10Y bond yields remain above 4, this currency will remain stable without heavy trade.

147.50 146 are important support levels. Positive channel persists. According to the price action, the technical correction to 148.45 is possible not far but unlikely be today. Volatility remains tight.

GBPUSD

GBPUSD lost 0.19 in the last week, traded slightly weaker this morning at 1.3041. UK retail sales in September unexpectedly improved by 0.3, but that was not enough for the British Pound to close higher last week. We think that even if retail sales came stronger than before, BoE is unlikely to change the forward guidance the next move will be to lower the rates sooner than later….