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US Session recap – Markets are tentative

FXStreet (Guatemala) - The FX space over the US session didn’t give many opportunities while traders sit on their hands ahead of key events ahead in the week. While the Scottish referendum is key for this week for the UK and may be a catalyst through Sterling and the Euro, UK inflation in the CPI report tomorrow, BoE minutes on Wednesday and the Fed and FOMC this week are still of key note.

EUR/USD gave us some activity within a 20 pip range sub of the mid point on the 1.29 handle, but most of the action in the pair came from the European session with the Trade Balance coming in worse than expected with a surplus of 12.2B. In early trade we got a look at the New York manufacturing index that jumped significantly to yearly highs at 27.54. The greenback however paid little note while industrial production put a dent in performance coming in at -0.1% while 0.3% had been expected and took the pair up from the lows of the European and US sessions
that were a handful of pips away from the psychological 1.29 handle at 1.2909.

GBP/USD was a non event while traders sit on their hands ahead of the Scottish Independence Referendum on Thursday 18 September 2014 with committed bulls setting their territory on 1.6200 with a 1.6220 supporting barrier while offers flooded the upside at 1.6240.

USD/JPY traded in a similar fashion with any attempts from aggressive bears on the 107 handle around 107.30 curtailed and forced back into the trenches around 107.20 support with a low of 107.00 printed after the worse than expect US data.

AUD/USD gave us some movement within a 20 pip range in tennis fashion trading in a tug of war between the bears and the bulls having closed the opening gap after the Aussie slid below the 0.90 handle for the first time since early March, and of some relief to the RBA. 0.9050 capped the relief rally and risks are still looking heavily weighted to the downside in an extension of the overall daily bear trend in the pair.

Key events:

NY Empire State Manufacturing Index (Sep) jumps to 27.4

Industrial Production (MoM) (Aug) disappoints at -0.1%

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