Were published the following data:
00:00 Australia consumer Inflation expectation Oct 3.8% 4.3%
00:30 Australia changing the volume of mortgage lending for August 2.8% Revised from 2.9% 0.5% 1.0%
04:30 Japan PMI in the services sector August 0.1% 0.1% -0.2%
The U.S. dollar early in the session Thursday continues to remain under pressure against other major currencies. The negative impact continues to have on the eve of the published minutes of September meeting of the open market Committee (FOMC) of the fed. According to the published document, the Federal reserve fear that the period of low inflation in the US may be delayed. Overall, the discussion of low inflation and the preservation of these indicators over a long period of time was devoted quite a substantial portion of the September meeting of the Committee. If such concerns are justified, the regulator may reduce the pace of monetary policy tightening, although in the current year the heads of the fed still expect one rate hike.
The focus of market participants remains the Catalan crisis, although after the adopted on Tuesday the government’s decision autonomy (the signing of the Declaration of independence of the region from Spain and transfer the entry of the Declaration in force for a few weeks) fears of a further deterioration of the situation decreased. The Spanish government has appealed to the government of Catalonia to clarify October 16, was proclaimed the independence or not. In the case of an affirmative answer to the authorities of Catalonia had until October 19 to correct the situation. Further developments will be determined by the response of the Catalan leader.
EUR/USD: during the Asian session the pair rose to $1.1880. The Euro continues to be adjusted reinforced by a bullish divergence on four hour chart and already approached to the resistance level of the descending channel on 8 September. 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. However, in the case of fixing pairs above the resistance, you will need to access the purchase. The nearest resistance is level $1.1890 (high of the American session on September 25)
GBP/USD: during the Asian session the pair rose to $1.3260. 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 downward trend and is now near the resistance of the descending channel on September 20. In such a situation, it makes sense to open a new sale on the end of a correction. The nearest resistance is at $1.3290 (maximum of 4 October)
USD/JPY: during the Asian trading session the pair fell to a Y112.25. The pair continues to consolidate after the early reduction. 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 Y112.00-05 (Oct 10-11 lows)
Today, market participants will track data on the producer price index in the United States, which will be released at 12:30 GMT. Fears of the fed regarding the fact that the period of low inflation in the US could be delayed, increased the importance of U.S. inflation data. Important and statistics on crude oil inventories (15:00 GMT). Also today, pay attention to the comments of the representatives of the Central Bank: Mario Draghi (ECB), Liel Brainard (FRS) and Jerome Powell (Federal reserve) at 14:30 GMT, and Carolyn Wilkins (Bank of Canada) at 19:15 GMT.
Bogdan Terzi, an analyst at TeleTrade