Were published the following data:
00:00 Canada Bank holiday
00:00 Japan Official holiday day
00:00 US Bank holiday
01:45 China PMI Index in the services sector Caixin/Markit September 52.7 53.1 50.6
The first session of the new week on the currency market began in conditions of reduced trading volumes, as financial markets in Japan were closed today in connection with celebration of Day of physical education. It is worth considering that the whole session Monday, likely will be in a similar vein, because in addition to Japan’s financial markets will not work in Canada, which celebrates thanksgiving, and the United States where no banks will work due to the celebration of Columbus Day, although exchange will work in normal mode.
In the beginning of today’s session, the focus of market participants are news of a political nature with Japan, Europe and the USA, which took place on the weekend.
Japan reported that the Prime Minister has declared readiness to head the government if his liberal democratic party on the basis of early national parliamentary elections, will retain a majority in Parliament (early elections in Japan will be held on 22 October this year).
In Europe, the main theme continues to be the Spanish Catalonia, where weekend protests against the plans of the leaders of the region to declare independence after unrecognized referendum held at the weekend. It is expected that the Catalan Parliament tomorrow will consider the question after the unrecognized referendum and possibly to declare independence. At the same time, the Prime Minister of Spain Mariano Rajoy has said it is ready to do everything to prevent the secession of Catalonia.
From the United States reported a sharp statements of representatives of the Republican party against the American President, whose actions they disapprove. So, Republican Senator Bob Corker, who heads the Committee on foreign relations of the Senate, said that the President of the trump refers to his position as a “reality show” making irresponsible threats against other countries, which could lead the country “on the path of world war III”.
EUR/USD: during the Asian session the pair fell to $1.1725. Euro konsolidiruyutsya after Friday’s growth. Reinforced by a bullish divergence the pair is trying to adjust to the General downward trend. Recall from September 13, the single currency was fixed under the support level of the uptrend channel from August 17, and is now under the control of the bears. In this situation, the best strategy is to look at the sales at the end of this correction. The nearest resistance is level $1.1755 (MA 200 H1)
GBP/USD: during the Asian session the pair rose to $1.3120. Lb is adjusted after the rapid 2-day decline on Thursday and Friday. On the hourly chart bullish divergence correction helps to develop. However, globally the pair is 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 at $1.3145 (high of the American session, October 5)
USD/JPY: trading the Asian session the pair fell to a Y112.30. The pair continued Friday’s decline after the publication of the NFP. It is worth noting that the couple already the second week trading range near the level of Y113. Globally the USD/JPY is still under bullish control. Most appropriate in this situation will be opening new purchases from the lower border of the last traded range. The nearest support is the level of Y112.30 (session low)
Today’s session will not be sated by macroeconomic statistics and scheduled events. Of particular interest will represent only the German industrial production (06:00 GMT) and the European data on index of investor confidence from Sentix (08:30 GMT).
Bogdan Terzi, an analyst at TeleTrade