| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.308 | 100.55 | 1.679 | 1.1785 | |
| Resistance | 1.294 | 99 | 1.6725 | 1.1735 |
| 1.287 | 98.7 | 1.647 | 1.171 | |
| 1.2485 | 96.85 | 1.614 | 1.1585 | |
| Support | 1.246 | 95.75 | 1.561 | 1.1475 |
| 1.2035 | 93.9 | 1.546 | 1.145 |
The British pound traded near its lowest level in more than five years against the dollar before a report that will probably show retail sales dropped last month and the British economy contracted in the third quarter. ``I don't see anything that can stop this,'' said David Woo, global head of currency strategy in London at Barclays Capital. ``It's shocking. I can't say we've anticipated this move.'' Bank of England Governor Mervyn King also said this week the U.K. may enter a recession. A report tomorrow may show the economy contracted 0.2 percent in the third quarter from the previous three-month period. The GBP/USD is currently trading at $1.6315 as of 7:55am, GMT.
The Japanese yen may strengthen 8 percent by next year to 90 per U.S. dollar as investors dump higher- yielding assets funded in Japan and bring their cash home, Barclays Capital said. The yen appreciated 8 percent against the dollar in the past year, the only gainer among the 16 most actively traded currencies versus the greenback. ``The main story is that risk aversion will encourage unwinding of yen carry trades,'' said Toru Umemoto, chief currency analyst in Tokyo at Barclays Capital, Britain's third-biggest lender. `` This is coming from the risk of a global recession.'' The USD/JPY is currently trading at 97.52 as of 7:42am, GMT.
Economists at Deutsche Bank AG say the ECB will slash the benchmark rate to a record low of 1.5 percent by the middle of next year from the current 3.75 percent as the euro-region economy heads into a recession. European Central Bank President Jean Claude Trichet may need to show he's still willing to fight inflation after price expectations soared in the wake of the bank's Oct. 8th interest-rate reduction. The EUR/USD is currently trading at $1.2828 as of 7:55am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance | Actual |
| 15:15 | BOC Governor Carney Speaks | CAD | 3 | ||||
| 14:30 | Monetary Policy Meeting Minutes | CAD | 3 | ||||
| 12:30 | Jobless claims | USD | Weekly | 461.0K | 470.0K | 2 | |
| 9:00 | Industrial New Orders m/m | EUR | Aug | 1.00% | 0.30% | 2 | |
| 8:30 | Retail Sales m/m | GBP | Sep | 1.20% | 0.90% | 3 | |
| 8:30 | BBA Mortgage Approvals | GBP | 21.1K | 2 | |||
| 8:00 | Current Account | EUR | Aug | -1.7B | -5.0B | 2 | -8.4B |
