| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.4720(M) | 91.80(M) | 1.6745(M) | 1.0490(M) | |
| Resistance | 1.4680(M) | 91.75(M) | 1.6660(M) | 1.0465(M) |
| 1.4635(M) | 91.00(M) | 1.6615(M) | 1.0425(M) | |
| 1.4500(M) | 90.20(S) | 1.6480(M) | 1.0380(M) | |
| Support | 1.4465(M) | 89.70(M) | 1.6455(M) | 1.0340(M) |
| 1.4410(M) | 88.85(M) | 1.6440(M) | 1.0320(M) |
The yen rose against the euro on speculation trade protectionism between the U.S. and China will escalate, boosting demand for the relative safety of Japan’s currency. The yen gained versus all 16 major counterparts after China announced a probe into the alleged dumping of American auto and chicken products, sparking concern trade disputes will derail the global economic recovery. The China-U.S. confrontation is “creating some fears this could spill over to U.S. equity markets or equity markets in general and take some of that risk appetite off the table,” Greg Gibbs, a currency strategist in Sydney at Royal Bank of Scotland Group Plc, said on Bloomberg Television. “The dollar should bounce back on the back of trade tensions that have occurred over the weekend between the U.S. and China.” The USD/JPY is currently trading at 90.55 as of 9:24am, London Time.
Sterling fell on Monday against the dollar as weaker equity markets dulled appetite for riskier assets, undermining flows into the UK currency.
Sterling's retreat came as the dollar eked out gains against a basket of major currencies as speculators covered short positions which drove the greenback last week to its lowest levels in almost a year. Sterling also retreated against the euro on some profit taking after it spiked to one-week highs on a view the Bank of England's decision to keep monetary policy unchanged last week suggested the UK economy might be stabilizing. "We maintain the view that another upside surprise in inflation could raise concerns about the BoE credibility and consequently would be EUR-GBP positive," Commerzbank analysts said in a note. "We recommend buying EUR-GBP on dips around 0.8730 with a target of a bounce back above 88.00." The USD/GBP is currently trading at $1.6575 as of 9:33am, London Time.
The Swiss franc may strengthen against the euro over the next year amid policy tightening by the Swiss National Bank, according to UBS AG, the world’s second- biggest currency trader. “The cross may have a knee-jerk reaction higher after the SNB meeting if the central bank again speaks about its desire to curb exchange-rate strength,” Mansoor Mohi-uddin, chief currency strategist in Zurich at UBS, wrote in a report dated Sept. 12. “If that causes the cross to get back to 1.53 - 1.54, that will present attractive long-term opportunities to short euro-franc.
Ultimately the cross is likely to trade back into 1.45-1.50 range in the next 12 months once the SNB exits its super loose policies.” The USD/CHF is currently trading at $1.0405 as of 10:03am, London Time.
Today's Economic Events
| Time | Event | Currency/Country | Period | Previous | Forecast | Significance | Actual |
| 23:01 | RICS House Price Balance | UK | -8.1 | 0 | 4 | ||
| 22:45 | Manufacturing Activity | New Zealand | -0.9 | 2 | |||
| 12:30 | Capacity Utilization Rate | Canada | 69.3 | 2 | |||
| 9:00 | Industrial Production (M-o-M) | Eurozone | Monthly | -0.6 | -0.4 | 2 | |
| 9:00 | Industrial Production (Y-o-Y) | Eurozone | Yearly | -17 | 3 | ||
| 9:00 | Employment (Q-o-Q) | Eurozone | Quarterly | -0.8 | 2 | ||
| 9:00 | Employment (Y-o-Y) | Eurozone | Yearly | -1.2 | 2 | ||
| 7:15 | Producer & Import Prices (M-o-M) | Switzerland | Monthly | 0 | 2 | ||
| 7:15 | Producer & Import Prices (Y-o-Y) | Switzerland | Yearly | -6.1 | -5.5 | 2 | |
| 4:30 | Industrial Production (M-o-M) | Japan | Monthly | 2.3 | 2 | ||
| 4:30 | Industrial Production (Y-o-Y) | Japan | Yearly | -23.5 | 3 | ||
| 4:30 | Capacity Utilization (M-o-M) | Japan | Monthly | 2.3 | 2 | ||
| 4:00 | Tokyo Condominium Sales (Y-o-Y) | Japan | Yearly | -9.1 | 4 |
