FOMC Minutes to show the vote and views on Operation Twist

GBP/USD

Range: 1.5543 – 1.5690

Support: 1.5530

Resistance 1.5688

Sterling is trading under pressure against all currencies this week after MPC members Davis Miles and Martin Weale turned from their normally hawkish stance to Dovish. Mr Miles made a strong argument for the BOE decision last week to be the first Central Bank to add fresh stimulus whilst Mr Weale made comments that further stimulus may still be added. Today see’s the release of the UK jobs reports and a weaker number could be the catalyst for a move through 0.8800 in EUR/GBP.

EUR/USD

Range: 1.3581-1.3660

Support: 1.3530

Resistance 1.3700

EUR/USD failed at the 1.3700 resistance level again in the New York session yesterday and had a late move lower below 1.3600 on the Slovakian parliament decision to vote no to an extension to the EFSF. The NO vote is not the end but merely a delay to the extension of the EFSF as the second vote is expected to be passed later in the week and potentially today or tomorrow. It should be known that under the European agreement one member state is allowed to withdraw their additional backing to the EFSF and with Slovakia providing just 1% of the total fund the question has to be is this really going to make a difference in the grand scheme of the crisis?

USD/JPY

Range: 76.62-76.75

Support: 76.30

Resistance 77.30

This pair continues to make trader eyes red with boredom as the tight ranges continue. I believe EURO/JPY will be the catalyst for a move as a break or failure of 105.30 resistance level could see some position adjustment in the market. This evening we will get the minutes from the September FOMC meeting where ‘Operation Twist’ was announced. With this pair the most sensitive to US yields we could see a move lower if the minutes show a bearish view from the dissenting voters of Kocherlakota, Plosser and Fisher.
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