EUR/USDUSD/JPYGBP/USDUSD/CHF
1.31197.41.57051.2235
Resistance1.30896.71.5621.2175
1.296595.41.55351.2075
1.288594.61.5341.19
Support1.25793.551.5311.183
1.243592.51.5181.1765

The Japanese industrial production slid 3.1% in October, manufactures predict record cuts ahead, increasing the fears from a deep and prolong recession. The high level of risk aversion in the market is providing support to the low yielding currency. Repatriation by Japanese insurers is assumed to initiate further support to the Yen. "The market is wavering between decisive trends with too many factors to digest, In such market conditions and thin liquidity, only flows from corporations and such will provide direction," said Minoru Shioiri, chief manager of foreign exchange trading at Mitsubishi UFJ Securities. The Yen was trading around 95.25 against the dollar and 123.35 vs. the euro at 07:20 (GMT).

Speculations of a possible correction against the dollar were mounting in the last days when traders estimate the euro can recover toward the levels of 1.33/135. The assessments are based on technical charts that showed a triple bottom and drop in inflation pressure. The easing inflation pressures in the EZ are freeing the ECB to focus on reviving the economic activity. Stops are spotted below the levels of 1.28.

The EZ will publish the CPI flash estimate at 10:00 (GMT) which is expected to close to the 2.0% central bank target. The unemployment rate in the EZ is expected to rise to 7.6% from 7.5% and will be published at 10:00(GMT) as well. The UK will release the sale volumes among retailers and wholesalers with the CBI index at 11:00(GMT). Further drop in sales is expected which might pressure the Sterling.

Pie


Today's Economic Events

Time Event Currency Period Previous Forecast Significance Actual
13:30Current AccountCADQuarterly6.8B5.1B2
11:00CBI Realized SalesGBPNov-27-353-46
10:00Unemployment RateEUROct7.50%7.60%17.70%
5:00Housing StartsJPYNov54.20%29.30%219.80%