The Annual Conference of the IMF in Tokyo over the weekend proved to be a non-event for the cross, which is still waiting for any catalyst to define a clearer trend, either way.
Chinese September data failed to spur sentiment, despite the wider trade surplus (CNY27.7 billion vs. CNY 26.6 billion) and the improvement of the exports. Inflation figures came in lower that expectations, rising 0.3% MoM and 1.9% YoY.
Ahead in the day, empty docket in the euro zone will leave the speech by J.Barroso before the European Parliament as the main event in the bloc.
In the US, September retail sales and the NY Empire State manufacturing index will be the most important releases.
The cross is down 0.30% at 1.2914 with the next support at 1.2880 (prior intraday resistance) ahead of 1.2827 (low Oct.11) then 1.2823 (MA200d) and 1.2804 (low Oct.1).
On the flip side, a breakout of 1.2993 (high Oct.12) would bring 1.3035 (high Oct.8) then 1.3072 (high Oct.5) and 1.3112 (Upper Bollinger).