EUR/USDUSD/JPYGBP/USDUSD/CHF
1.4535115.952.111.1735
Resistance1.4525115.42.11.167
1.45114.92.08981.162
1.44151142.0781.1485
Support1.4405113.752.07631.137
1.4375113.252.07551.129

Yesterday, the yen strengthened as investors bailed out of some risky yen-funded currency bets in the wake of deepened fears that sub prime mortgages would spread further havoc at U.S. banks.

Global stock markets slumped 1.1 percent as investors shied away from many investments considered risky, including "carry trades," in which the yen is used as a funding vehicle for bets on higher-yielding currencies.

“The credit crunch/sub prime mortgages crises continue widening across the globes. The affect seems to be getting not only in U.S and Euro zone; this is the main reason why investors such as carry traders close out and by that supporting the Japanese currency” said Rodian Rahnayev financial dealer from Finotec.com group.

On Sunday, Citigroup, the largest U.S. bank, said it may write off $11 billion of sub prime mortgage losses, on top of a $6.5 billion write-down last quarter. U.S. and European banks in 2007 wrote down more than $23 billion of sub prime-linked debt and some analysts see many more such write-downs.

The yen was also boosted by hawkish comments from Bank of Japan Governor Toshihiko Fukui, who underscored the need to raise interest rates in a timely manner.

In other trading, the high-yielding Australian dollar fell 0.4 percent against the greenback. But today the investors will look very closely to the Australian interest rate announcement at 22:30 (GMT). For now, most of the analysts expect the Australian Central Bank will raise the rate by a quarter percentages to a 6.75% this can push the Australian aussie higher against the American dollar. Also, the focus will be to the Fed Chairman Bernanke Speech at 18:40 (GMT).

Pie chart


Today's Economic Events

DateEventCountryPeriodPrevious ForecastSignificance
05:00 GMTLeading Index m/mJPYSep27.3N/A2
08:55 GMTServices PMI GermanEUROct53.154.62
09:00 GMTServices PMIEUROct54.255.62
10:00 GMTPPI m/mEURSep0.10%0.30%3
10:00 GMTRetail Sales m/mEURSep0.10%0.60%2
11:00 GMTIndustrial New Orders m/mEURSep1.20%-0.20%2
13:30 GMTBuilding PermitsCADSep1.40%2.00%3
15:00 GMTIvey PMICADOct56552
18:40 GMTFed Chairman Bernanke SpeaksUSDNov3
22:00 GMTABC WatchUSDWeekly-15-151
22:30 GMTInterest Rate StatementAUDNov6.50%6.75%4
23:00 GMTBRC reatail salesGBPOct3N/A2