FX News – October 8: USD Gains on Talks of End of US Government Stand-off

FX Strategy Articles > FX Trading Tips


The yen lost some ground against the greenback during today's session. The USD/JPY pair initially fell sharply a little above the 96.60, before picking up again prior the opening of the European session.


The drop has been primarily associated with the increasing confidence that the US Congress might finally put an end to its stand-off. In addition, the Nikkei gained 0.3 per cent in today's session, which contributed to a weaker yen.


The USD/JPY pair is currently trading at 97.15, with initial resistance seen at 97.03, followed by 97.28. Meanwhile, initial support is at 96.34, followed by 96.10.


The EUR/USD pair, meanwhile, fell during the Asian session towards the 1.3550 zone. As with the USD/JPY pair, this can be associated with the ongoing stand-off in the US government. Aside from that, there's also the upcoming Factory Orders data from Germany, which is expected to have improved from the previous -2.7% to 1.2% in August.


The euro managed to improve against the greenback over the past few hours, but the progress has been slow and difficult. The pair peaked near the 1.3575 zone, but has since fallen down again and is currently trading at 1.3568.


Initial resistance for the EUR/USD pair is at 1.3612, followed by 1.3646. Meanwhile, initial support is at 1.3562, followed by 1.3528.


Earlier today, National Australia Bank released Australia's Business Confidence and Business Conditions report for September, wherein the former rose from 4 to 12, while the latter improved from -7 to -4. Despite the positive news, the AUD/USD pair initially dropped after the release, although it has since picked up again late in the Asian session.


The AUD/USD pair is currently trading at 0.9445, with initial resistance seen at 0.9440, followed by 0.9464. Meanwhile, initial support is at 0.9376, followed by 0.9353.

By FX Strategy Team, Published on 8th of October 2013
eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time