The Yen, Australian and New Zealand Dollars

Pitted against the Euro and USD, the Yen is down as investors anticipated the conclusion of the BOJ’s policy meeting. Uncertainty is felt by analysts as to the next move of policy makers after Industrial Production fared better than expected and the escalating of Retail Sales last September. Sources reported that the monetary authorities may soon adopt a more moderate policy when dealing with inflation.

New Zealand and Australian dollars was down against USD as demand for the green bucks increased. It seems that trading experts have provided a go signal for to buy dollars after Fed Reserve decreased the asset purchasing program.

However, on the domestic side, Australia announced a decline of price to 0.8% in Imports that frustrated speculators who were expecting an increase of 0.3%. In New Zealand, the Reserve Bank allowed the key cash rate to remain unchanged, according to the prediction of economists.

Barclays Allocates £500m for FOREX Penalties

BarclaysBarclays Bank has allotted £500m for current investigations into the alleged manipulation of foreign exchange involving several primary lending institutions.

This condition is bigger compared to the £290m penalty for manipulation of the Intercontinental Exchange London Interbank Offered Rate or LIBOR in 2012.

Meanwhile, the Financial Conduct Authority (FCA) is working on a settlement with six large banks in connection with their roles in the £3.5 trillion daily FOREX markets.

FCA will disclose results of its probe along with degree of penalties in November. Royal Bank of Scotland is also part of said probe and will possibly apportion funds for future penalties.

The publication of the regulatory action may include transcriptions of email messages and electronic chats associated with the scandal.

Barclays bared figures for the third quarter. It took an additional £170m hit for payment protection insurance (PPI).

The fine is the latest in a series of punishments imposed on the bank. Barclays acknowledged that fraud claims affected the performance of its investment bank and profits decreased significantly.

During the third quarter, profits dropped more sharply from £465m to £284m one year ago.

Almost 7,000 of job cuts affected the investment bank’s 24,000 employees.

Barclays released £160m of the total £1.5bn provision. The PPI indignity is the most expensive so far incurred by the banking sector.

Euro and US Dollar

The single currency was fairly lower versus the US dollar after positive third quarter growth figures in the United States raised market sentiments.

The Fed’s recent policy statement showed support for the country’s currency.

EUR/USD was 1.2548 during trading early in the day. This was the lowest since October 6. The currency pair later consolidated at 1.2617. It was down by 0.13 percent.

The pair will possibly obtain support at 1.2502 and resistance of 1.2772.

Market outlook was bolstered after the US Commerce Department publicized that gross domestic product increased at a yearly rate of 3.5 percent during the last three months and projection for three percent.

An independent report revealed that Americans filing for new claims with regards to jobless benefits were up for a second straight week although levels were pointing to resurgence in the labour market.

It stated that initial jobless claims soared to 3,000.

In the euro region, official figures showed that consumer price inflation in Germany progressed at a yearly rate of 0.8 percent this October which was unchanged from September. It compared to projections for a 0.9% reading.

The report came after data indicated that unemployment in Germany dropped by 22,000 in October compared to projections and gained 5,000.

Germany’s unemployment rate remained at 6.7 percent.

Spain’s economy increased 0.5 percent within the last three months and grew 1.6 percent on a yearly basis in accordance with forecasts.

The common currency was also lower versus the pound sterling. The EUR/GBP slipped 0.20 percent to 0.7874.

Strongest Currencies for the Day

forex tradingToday is after two events: the FOMC and the RBNZ. With the statement, Fed was overall more hawkish while the currency of the RBNZ was more bearish. One of the strongest currencies trading today is the NZD as seen in the figures. If the NZD is higher versus the EUR and the CHF, it looks as if Germany will report CPI as of -0.2% MoM against -0.1% MoM; giving justification in some respects that pitted against other currencies, the NZD has changed only a bit.

EUR and CHF appear to be the weakest currencies. They will certainly be moving along together as the pair is presently reduced to 1.2057 and the SNB reported that they will continue to protect the level of 1.2000 vs. their main trading partner.  So it is expected that the lowering of EUR will be the same for the CHF.

The U.S. weekly Initial Claims for the present week will soon be released with the estimate of 285K against 283K. The MA for 4 weeks has to continue nearer the low levels since 2000.  Germany will be giving out the aggregate figure of the CPI at9:00 o’clock this morning with the pieces being released that appeared more like -0.2 to -0.3% against estimate of -0.1% estimate for the month. Chairman Yellen will speak at the same time so any insight from him will be important to consider.