EUR USD
The EUR rose 0.63% against the USD and closed at 1.2918.
Yesterday, the ECB in its first of eight Targeted Long Term Refinancing Operations (TLTROs) to be carried out between 2014 and 2016, allocated €82.6 billion to 255 counterparties at a fixed interest rate of 0.15%, less than market consensus for an allotment of €150.0 billion.
In the US, number of initial jobless claims registered a drop to 280K in the week ended 13 September 2014, marking its lowest level since July, beating market expectations to drop to a level of 305K and compared to a revised reading of 316K in the prior week.
The pair is expected to find support at 1.287, and a fall through could take it to the next support level of 1.2823. The pair is expected to find its first resistance at 1.2948, and a rise through could take it to the next resistance level of 1.2979. Going forward, investors would look forward to the release of the CB Leading Indicator from the US.
GBP USD
the GBP rose 1.13% against the USD and closed at 1.6434, after the UK retail sales advanced 0.4%, on a monthly basis, in August, exceeding market expectations for a gain of 0.3%.
The pair is expected to find support at 1.6318, and a fall through could take it to the next support level of 1.6153. The pair is expected to find its first resistance at 1.6587, and a rise through could take it to the next resistance level of 1.6691. Going forward, the outcome of a highly awaited voting result on the Scottish independence would keep the investors on their toes.
USD JPY
The USD strengthened 0.15% against the JPY and closed at 108.74.
the BoJ Governor, Haruhiko Kuroda, stated that despite recent economic data revealing weak industrial production and exports in Japan, but he continues to remain upbeat on the recovery of nation’s exports, citing improvements in the world economy.
The pair is expected to find support at 108.61, and a fall through could take it to the next support level of 108.06. The pair is expected to find its first resistance at 109.6, and a rise through could take it to the next resistance level of 110.03. Trading trends in the Yen today would be determined by Japan’s coincident and leading indices revealing the economic health of the nation, scheduled to release in a few hours.
USD CHF
the USD declined 0.90% against the CHF and closed at 0.9344. The Swiss Franc gained ground after the SNB kept its benchmark interest rates unchanged at 0%, in line with market expectations in September. The central bank, further cautioned that Switzerland’s economic outlook has deteriorated considerably and trimmed its domestic growth forecast for 2014 to 1.5% from 2% and kept its inflation forecast steady at 0.1%.
The pair is expected to find support at 0.9309, and a fall through could take it to the next support level of 0.9275. The pair is expected to find its first resistance at 0.94, and a rise through could take it to the next resistance level of 0.9457. Amid a lack of domestic economic data, investors would keenly await SNB’s Q3 Bulletin, due on Wednesday, to get more insights on the Swiss economy.