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Session Recap: Markets, here is October; but tomorrow Draghi is coming

FXStreet (San Francisco) - October is a dangerous month and it arrived with a bunch of bad news. Mark Twain once said: "October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February."

So, October came with fears about Ebola spreading into the US; weaker than expected economic data across the world, unpopular decisions about market in the US courts and Goldman Sachs' revisions to the downside of Q3 US GDP estimate. All of these, just ahead of ECB's meeting and market's expectations for a Draghi's ABS plan.

In this framework, EUR/USD trade sideways to close just above 1.2600 at 1.2615; the GBP/USD extended decline and now it finished the day below 1.6200 at 1.6180; while the USD/JPY briefly priced above 110.00 before falling more than 100 pips to close below 109.00.

"The pair has succumbed to both, stocks and yields slides, as US 10Y notes lost around 10bp this Wednesday," comments Valeria Bednarik from FXStreet. "The 1 hour chart shows price finding short term support at its 200 SMA around 109.10 while capped by 100 one in the 109.40 price zone. Indicators in the same time frame reached oversold levels and attempt a shy bounce, still deep in red."

Main headlines in the American session

September 2014 US ADP employment report 213k vs 210k exp

US: ISM Manufacturing PMI drops to 56.6 in September

Goldman Sachs cuts Q3 US GDP estimate

US stocks collapses in a frustrating first of the quarter

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