There have been no further releases with early Europe unwilling to follow-through on either side and beginning to form what look to be potential erratic ranges within a larger consolidation.
The following economic releases are due today:
September
Bank of England Minutes
U.K. Claimant Count Rate 2.6%
U.K. Jobless Claims Change - 4.0K
U.S. CPI (MoM) +0.2%
U.S. CPI (YoY) +2.8%
U.S. CPI Excl food & energy (MoM) +0.2%
U.S. CPI Excl food & energy (YoY) +2.1%
U.S Housing Starts 1283K
Building Permits 1288K The Fed’s Beige Book is due to be published
There are just two days to go before the G7 finance ministers convene in Washington. There is obviously a good deal of central bank generated hype but frankly there doesn’t even seem to be a quorum in the ECB that feels there is actually a problem with the Euro at current levels.
However, rumors abound and everyone prefers a scare story rather than “nah… nothing will happen.” But then when it comes to holding an open position over that weekend there are few market traders who’ll be willing to risk their bonus on what is still an unknown. Frankly, any larger positions will have been squared by now and unless any official opens his or her mouth and surreptitiously places a foot in it, the chances of any real break of the range we have seen over the past 2-3 weeks is very low. Stories abound today of the squaring of carry trades but that isn’t the nature of the beast. Journalists have to fill a page and analysts have to find an excuse for a move. The move down in Dollar-Yen is almost complete – or may be it is complete and the Dollar isn’t going anywhere unless Mount Fuji suddenly emerges from its dormant state or a tsunami hits Tokyo Bay. So all the releases today will probably have no more impact than slurping down a sleeping pill. Having said that, if we’re talking ranges, the Dollar is probably closer to the top of the range against the Europeans than it is to the bottom. Note important support and resistance areas: USDJPY EURUSD USDCHF GBPUSD
Res: 117.10-50 1.4242-81 1.1893-27 2.0436-73
Res: 116.50-70 1.4190-19 1.1844-61 2.0363-80 Spt: 115.75-00 1.4121-43 1.1769-90 2.0275-84
Spt: 114.91-40 1.4068-00 1.1668-07 2.0174-21 | 
