The dollar enters US session at the back foot, after hitting session highs against basket of major counterparts in European session.
Highlight of the European session was upbeat German ZEW Economic Sentiment that came at 6.2 in October, well above forecasted 4.3 and 0.5 in September. However, strong data from Germany did not impact the Euro that continued to move lower.

Foreign Exchange

EURUSD was down almost 0.6% from Tuesday’s opening and posted fresh two-months low at 1.1070. Final break below strong technical supports at 1.1167 / 22 and extension under Friday’s spike low at 1.1103, maintains firm negative sentiment for the single currency. The Euro needs daily close below Fibo 61.8% level at 1.1108 to confirm bearish continuation.

GBPUSD remains under pressure and extends steady descend from last Friday’s recovery tops at 1.2475. The second day in red after flash crash on Friday, hit new low at 1.2248, down 0.9% from Asian opening, eyeing supports at 1.225 and 1.2180.
Comments from officials are quite negative for Sterling. Former IMF official sees 1.10 as ‘fair value’, while BOE’s MPC newbie Saunders sees the pound falling further.

USDJPY holds positive tone and was up 0.44% in Asia / early Europe, but unable so far to sustain break above 104.00 barrier. Key resistances at 104.30/43 remain in n/t focus, with extended consolidation to precede final push higher.

AUDUSD posted fresh low at 0.7534, on strong bearish acceleration in Asia / Europe that showed loss of 0.9%. Beginning of US session was in correction higher, as fall was limited by strong daily cloud support. Sentiment remains negative, as market participants are awaiting further signals from Fed for rate hike in December..

Commodities
US CRUDE OIL returned above $51.00 mark after correction from Monday’s $51.58 high found support at $50.60. Sentiment remains positive as global oil producers are say possible to reach deal on oil production cut when OPEC meets. Fresh gains came ticks away from key med-term barrier at $51.65. Further upside likely is on extended positive sentiment.
Near-term supports lay at $50.60 and $ 50.00. Targets are 51.65; 52.00; 52.32.
GOLD – recovery from Friday’s low at $1241 remains capped at $1265 for now, with bearish signals increasing on repeated failures to clear 200SMA barrier. Day’s low is at $1252, loss of which will put key n/t support at $1241 under increased pressure. Conversely, lift above $1265 would expose hurdles at $1269/77, ahead of strong $1280 barrier.
Overall sentiment remains bearish, as hopes for US rate hike rise.

Stocks
European stocks pull back from daily highs, but overall sentiment is still positive. FTSE hit marginally higher high at 7092, but so far unable to sustain gains for attack at record 7127 peak.
Wall Street opened in red, with Dow Jones down 0.11%; S&P 500 down 0.14% and Nasdaq100 down 0.14% after opening., Market Analysis