EURUSD

EURUSD is on the way for the first weekly positive closing after four consecutive weeks of loss. EURUSD was little changed today at 1.0875. Such a positive performance was mainly due to weaker USD, more than strength of EZ fundamentals. Inflation in EZ increased by 2 YoY in September, higher than before of 1.7, Such an increase in CPI will complicate ECB mission in reducing the rates soon. Busy day ahead from the US, no major data from EZ for today. 

Price action kept advancing, creating new support levels at 1.0775 1.0815, cementing reentry point for market bulls. Next target will be at 1.0870 which is doable executed then 1.0895.

USDJPY

USDJPY traded higher today advanced to 152.58 after BoJ kept the monetary policy unchanged while the markets are speculating that the BoJ could raise the rates to 0.5 as early as January, however we dont think that BoJ will raise the rates anytime soon due to fragility of the Japanese economy. This currency pair is highly correlated to the US job numbers, keep in mind that stronger nonfarm payrolls may support further USD strength.

 Price action is fully bullish now, heading higher to 153. 152 is support, then 151.60. Volatility could become aggressive later today.

GBPUSD

With three consecutive days of loss, GBPUSD was little changed today at 1.2891, the lowest level since midAugust. Labor Party governments budget in the UK was the main concern for the investors as the UK government has an intention to increase the…