Were published the following data:
00:00 USA the speech of the member of open market Committee of the fed R. Kaplan
06:00 Japan change in the volume of orders for equipment (preliminary data), y/y September 36.3% 45.3%
One of the main themes in financial markets in the beginning of the session environment continues to be Catalonia. The head of government autonomy Carles Pujdeme signed a document proclaiming the region’s independence from Spain, he proposed to postpone the entry of a Declaration in force for a few weeks. His decision to Pujdeme explained that the need for long-term dialogue with Madrid. The next step should be for Madrid, where today the Spanish government meets in emergency session. Convened by Prime Minister Mariano Rajoy. The meeting begins 06:00 GMT. Carles Pujdeme chose the “soft” scenario of the implementation of the referendum results, which implies negotiations with Madrid, which reduced fears of market participants. But in the capital of Spain in no hurry to negotiate, continuing to reject the possibility of independence of a region and expressing its readiness to take tough measures, if Catalonia will start the procedure of exit from the country. If the position of Madrid will not change the document on the proclamation of the independence of Catalonia from Spain will likely submit it to a vote of the Parliament of autonomy, which it likely will support. In this case, the chances of a confrontation will worsen that will have a negative impact on market sentiment.
EUR/USD: during the Asian session the pair traded in the range of $1.1795-25. The Euro continues to be adjusted increased bullish divergence on four hour chart. However, the trend for the currency pair on 4-hour chart remains to the downside and is trading below the resistance level of the channel on 8 September. In this situation, the best strategy is to look at the sales at the end of this correction. You can also trade on the purchase, but with short targets on the lower timeframes. The nearest resistance is level $1.1825-30 (highs September 29)
GBP/USD: during the Asian session the pair traded in the range of $1.3190-20. Pound, as the Euro continued yesterday’s correction. On the hourly chart bullish divergence correction helps to develop. However, globally the pair is still in a steady downtrend. In such a situation, it makes sense to open a new sale on the end of a correction. The nearest resistance is the level of $1.3225 (maximum 10 Oct, MA 200 H1)
USD/JPY: during the Asian trading session, the pair traded in a range Y112.20-55. Pair konsolidiruyutsya after yesterday’s decline. It is worth noting that the couple already the second week trading range near the level of Y113. However, globally the USD/JPY is still under bullish control and updating the yesterday’s high will open the way to new growth of the pair. The nearest support is the level of Y112.00 (minimum of 10)
In addition to the emergency meeting of the government of Spain, an important event on Wednesday will be the minutes of the September meeting of the open market Committee (FOMC) of the fed. The document will be published at 18:00 GMT. Also today you should pay attention to U.S. data on the level of vacancies and labor turnover (JOLTs report), which will be released at 14:00 GMT.
Bogdan Terzi, an analyst at TeleTrade