Most Pairs Stay In Familiar Ranges Ahead Of G7 Meetings

With little fresh news out overnight meant most pairs stayed inside familiar ranges. G7 meetings begin today in Tokyo and may be a source of headline risk. Middle Eastern tensions remained high overnight with Turkey and Syrian involved in more incidents. Looking ahead, Weekly Jobless Claims forecast at 370k vs. 367k previously. Also August Trade Balance forecast at -44bn vs. -42bn. G7 meetings begin in Tokyo.

The Euro (EUR)
The EUR/USD rallied gently to 1.2915 before reversing back to 1.2850 lows with the single currencies struggling. The seemingly lack of progress being made at talks regarding Spain and Greece is hurting sentiment and we might continue to see new lows till the market is satisfied the crisis is under control.

The Sterling (GBP)
GBP/USD took a break from action overnight remaining close to the 1.6000 level for most of the day. The recent sell off on the cable could be slowing down with plenty of support seen below the big figure. There is little economic data out this week so we will be following the cue of the EUR/USD for fresh direction.

The Japanese Yen (JPY)
Traders are looking to test the Japanese authorities with USD/JPY falling back to Y78 ahead of the G7 meeting today in Japan. While constant Jawboning has slowed the Yen accent we are still at historically high levels. Watch EUR/JPY and Y100 which is expected to be in play today.

Australian Dollar (AUD)
The AUD/USD has a big day ahead after consolidating near the 1.0200 level. The September Unemployment Rate is expected to increase to 5.3% vs. 5.1% previously. The Employment Change is forecast at 3.75k vs. -8.8k previously. AUD/JPY is back below Y80 and more losses could be on the way if USD/JPY breaks below Y78. Looking ahead, Australian September Jobs Data.

Oil and Gold (XAU) Gold struggled in the strong dollar environment. Oil pulled back slightly but is supported above $90 by Turkish/Syrian and Israeli/Iran tensions.

Pairs To Watch
EUR/USD: To find support in lower?

USD/JPY: wWll G7 mention the yen strength?

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