After a sleepy start to the week, the USD resumes its strength. GBP/USD suffered a sudden drop to 1.2120. USD/JPY is trading at 104.85, at the high end of recent ranges and just ahead of the round 105 level.
The dominant theme of October has been the ongoing strength of the US dollar. The greenback gained ground against many currencies, especially against the majors. Occasionally, it has taken breaks, but these were followed by further waves of USD buying.
Update: US CB Consumer Confidence misses at 98.6 – USD rally stalls
Here is EUR/USD. The pair is on the ropes once again, clinging onto the recent lows of 1.0860 which is a seven-month low. Further support appears at 1.0820 and 1.0710. Draghi’s dovish words dragged it down to these levels last week. Will it fall further to the downside?
Here is GBP/USD. After the great flash crash, the pair never dropped again under 1.20, but it also failed to recapture the previous levels of 1.26. The round level of 1.20 serves as a line of support. Resistance is at the previous low of 1.2170.
