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Markets cautious as US shutdown continues all eyes on Bernanke speech later today

Article By: ,  Financial Analyst
October 2, 2013 10:10 AM

Still no end in sight for the US shutdown, keeping the market cautious on its outcome and the effect it will have, with the possibility of no non-farm payrolls this Friday. With the debt ceiling limit to hit by 17th October, we are on hold until the US government can agree on the terms to get back to work.

Elsewhere Australian data didn’t hit forecasts overnight, with building approvals down and the trade deficit narrowing not as expected, sending the Aussie down. USD/JPY is also dropping overnight – this has more to do with the US shutdown and the JPY being the safe haven, mainly in cross JPY pairs seeing the biggest losers so far.

Important data out today from the UK, EU and US. The UK is up first with Construction PMI still looking for the uptrend to continue and keep the strong pound rising. In the EU we have the ECB rate decision and Draghi press conference, always a volatile time when the market is trying to decipher the clues he may give away about the future of rate decisions. In the US the ADP non-farm employment change is a good indicator of non-farm data for Friday but as mentioned before there’s a possibility of no US data release. Fed Chairman Bernanke will be speaking later in St Louis and will be listening for what he may say about the government shutdown currently in place.

 


EUR/USD

Supports 1.3507 1.3477 1.3338 | Resistance 1.3556 1.3588 1.3648

 


USD/JPY

Supports 97.50 96.80 95.80 | Resistance 98.72 99.29 99.57

 


GBP/USD

Supports 1.6162 1.6128 1.6075  | Resistance 1.6190 1.6260 1.6380

 

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