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Forex pairs in this Article » EUR/USD, GBP/USD
FXstreet.com (San Francisco) - The US Dollar opened the week with somehow positive note against the Euro as the Greenback attempted to recover some ground. However, the bullish tone in the EUR/USD prevailed.

Early in the session, the EUR/USD fell from the 1.3815 area but pair was contained at Friday's lows at 1.3775. Then the pair traded back above 1.3800. In the latest hour, however, the USD is fighting back with the pair closing at 1.3780. The US Dollar index advanced for second session around 79.35, favored by a return of the risk aversion amongst traders ahead of the FOMC meeting on Wednesday.

"There’s little interest to buy the greenback and rising stocks are doing no good to the US currency," FXstreet.com analyst Valeria Bednarik commented in a recent report. She expects "downside corrective movements to continue attracting buyers, all the way down to 1.3710."

The GBP/USD tested the 1.6120 area again on Monday as the pair did on October 22 and 23 with similar results: A rejection. The pressure is mounting there, however the bullish tone will persist as far as the cable keeps 1.6120. In the 4 hours chart technical readings maintain a bearish tone, a break below 1.6120 should see the pair extending the slide, with 1.5970 as next big support to watch.

On the fundamental arena, US industrial production rose 0.6% in September, above expectations. But US pending home sales collapsed 5.6% in September, biggest drop since May 2010.

Main headlines in the American session:

Bank of Spain Deputy: Spanish banks reasonably capitalized

September US industrial production 0.6% vs 0.4% exp

Dijsselbloem satisfied with improvements in Spain's banking sector

US: Annual Pending Home Sales drop by 1.2% in September

US: Dallas Fed Manufacturing Business Index falls to 3.6 in October

Reuters poll: Small majority see another LTRO in January
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