Vekslers Forex Blog

The Monday morning go slow in FX land

Ken VekslerKen Veksler , Director, Accumen Management
United Kingdom, 15 October 2012 at 09:30 GMT+0
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News over the weekend was relatively light with the main highlight coming out of China with slightly better data prints, while Spain continues to avoid formally asking for its much needed financial assistance. Beyond that folks we continue to meander through October all in the lead up to the November US election. With the second of the three slated presidential debates due tomorrow, we wait to see whether Obama can pull back the lead (of sorts) that Romney has managed to get over him in the wake of the last debate. Otherwise, US earnings season continues today with the main standout being Citi due to report at 1 pm London time. US stocks have taken a small consolidative tumble but still manage to hang in there, treading water and shuffling sideways.

As far as standout price action, the prize must surely go to the lustrous yellow metal, which for no other reason I’ve had explained (feel free to fill me in otherwise) other than a technical break of important support around the USD 1760/65 area has dropped a rather impressive USD 20 or so, but has so far managed to hang in, sitting on next support around the USD 1745/50 area.

Elsewhere we remain not only confined to ranges, but even potentially worse right smack bang in the middle of them. Price action sadly is little telling these days as for instance this morning’s 50 odd point pop higher in EURUSD off the lows goes to demonstrate. No rhyme, reason or rationale has been garnered thus far from my contacts in the market, other than someone clearly had a buying interest in thin morning markets... Great...

The data slate holds little for us today other than retail sales and Empire state prints from the US.
I’ll be honest, I remain sidelined for now and smalls head scratching, wondering how long this debacle can continue.

Helmets on? Yeah probably.

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