EUR/usd
Selling of the single currency stopped as suddenly as it started. The bears failed to push EUR/USD below 1.29. This is exactly the level from where the pair started a rally after the announcement of QE3. Yesterday the single currency enjoyed a good buying interest at 1.2920, and this means that large players were defending their long positions, opened after the QE3 announcement on September 13. Exactly yesterday we mentioned that such performance had already been observed in history. Usually, the first wave of the speculative rally quickly reverses and drives the markets to that very place where they started growing. However, then in similar conditions one scale tilts towards the dollar as the softening of the fiscal policy actually make dollar purchases less attractive. This day promises to be quiet as there are no scheduled news releases for Europe and the USA. For this reason, the market may stay in moderately optimistic mood today. For those who believe that Bernanke's and draghi's decisions are favourable for the euro and negative for the dollar, the current levels (a bit below 1.30) look quite attractive for buying EUR/USD. In addition, this week the euro has significantly depreciated against other currencies because of the talks about the deplorable state of Spain's affairs and the country's intention to fight for the better terms to the last. Besides, Brussels has recently promised that Spain will have to face tough terms. Yet, what do all these words and concerns mean when the three world's largest CBs are pumping the toxic liquidity out of the markets and two of them even inject new, not burdened with underwater mortgages, money? The natural risk factor is a sharp change in the German sentiment and bad news from the markets, which are still rather high despite the flat trading this week.
GBP/USD
The sterling felt much better than the euro yesterday and this morning managed to return to the area of multi-month highs. Just like American exchanges, the British currency saw a faint resemblance of correction yesterday, however bears failed to bring the pair even to the first resistance level (1.6060). The sterling is the best currency to see how positive the market sentiment is at the moment. The previous local high is 1.63 and was hit in late April, higher than that the pair was last seen only in August 2011.
USD/CAD
The Canadian Loonie, staying out of the newspaper headlines, still demonstrates one of the best performances. Even before the QE3 announcement USD/CAD had been trading at the lowest levels since the previous year. And now despite a slight retracement this week, trading is held at the lowest levels for more than a year, at 0.9750. Taking a broader look at the situation, we can suppose that 0.9450 can become a global low. Yet it should be mentioned that the pair has been below 0.94 for a very short time (at the market peak in 2007, in 2011 the pair didn't manage to break through this resistance). We've turned to Loonie as Canada publishes some interesting statistics today – the consumer price index. Now it is expected that the annual CPI will remain low at 1.3%.
gold
There is a feeling that Gold has had enough consolidation today. The market has trailed stop-orders closer to the current prices ($1770), which promises an interesting outcome already next week, when the month, the quarter and the fiscal year in the USA will altogether come to the end. Here we also stick to the opinion that Gold is more likely to grow rather than start falling.
