Daily FX Wrap Up

With holidays in Canada, USA and Japan, European statistics did little to change the over all direction of the currency markets. From the European finalized PPI report for September, prices charged by producers decreased 0.3% in September and only 1.8% for the year to date. This represents the lowest gain since December 2005. Many analysts were expecting a 0.1% monthly increase and a 2.0% for the year. In England, inflationary pressures are not as strong as they had been forecasted, although this does not seem to be reason enough for the Bank of England to approve another rate hike to 5.0% by the end of the year. The major pairs were trading in tight ranges today. The EUR/USD had a range just below 80 pips along with the USD/JYP trading in a range of only 50 pips. With all this consolidation, many experts believe that a major move is waiting just under the surface….