Spill-Over Reaction

The US Jobless Report last Friday had a limited trading session which prompted speculation that its aftermath will spill-over on the Asian and European Session on the opening for this week. We have seen the USDX go to the 75.13 low levels with the GBP/USD touching its 1.6841 high and the EUR/USD at 1.5010 respectively.

It is a clear bias sentiment that any slight correction on the USDX or dollar vlue only gives an additional momentum to go lower although in a slow and orderly manner as most analyst say in the process.

With the Federal Bank' s so called Dovish outlook for the deteriorating dollar as an indication that low interest rates will remain for the longer period of time. However, the ill effects of the US dollar with other trading partners like China, who happens to have a huge chunk of Foreign US dollar Reserves are also looking at other investment opportunities outside of the US area.

Meanwhile, the USD/CHF holds its value at the 1.0031 and no such signs of any interventions from the SNB which have been quiet for sometime now. And the USD/JPY is at 89.90 as of this writing. No other news related to the current market is expected as the overwhelming negative sentiments of the US dollar prevails in the market until such time some stronger economic reports would say otherwise.

However, we find more favorable on the cross-rates with the GBP/CHF still intact on a long position closest to its price level of 1.6785-1.6800 but not lower on these support prices. Expect some corrective moves again on a daily basis as the GBP/USD holds firm on its prices and increase volatility as we move forward for the second week of November.

Good Luck and Happy Trading !