CAD is the strongest. EUR is the weakest.
As NY traders enter for the trading day, a snapshot of the percentage changes of the major currency pairs against each other show that the CAD is the strongest and the EUR is the weakest. However, activity is really quiet and contained.
Having a narrow trading range could lead to sharp swings within the range as traders who are long or short become nervous quickly at extremes if they are not broken (or extensions do not have momentum). It can also lead to trend like moves that take the pair outside the range and a directional bias is established. Cross currency pairs can also get involved with the swings. You need to understand that this is the dynamic so look out for momentum on breaks but do not be surprised with quick reversals. The below chart shows the ranges vs. the 22 day averages. All pairs are well below what is average for the last month of trading.
- NFIB small business optimism was released earlier for the US and it came in at 96.1 vs. 96.4 forecast.
- At 8:30 AM US import prices for the month of October will be released with expectations of -0.1% month on month, and
- At 10 AM also inventories and sales are both expected to rise by 0.1%.
- Fed's Evans is scheduled to speak at 2:30 PM. He is due to participate in a panel discussion about US government debt at the University of Chicago school of business.
- There is a 10 year bond auction today as well.
- At 12 PM ET, BoC Wilkens will speak and
- At 12:30 PM ET, MPC Cunliffe will speak.
