Previous session overview
The US Dollar held firm in Europe this morning. A first attempt to slow the greenbacks rise failed as EURUSD ran into strong resistance at 1.48, later on the pair pulled back to 1.4745 before a new attempt above 1.4800 was seen.

Cable had a volatile morning, from its low at 1.6350 the pair spiked up nearly 100 pips on better than expected UK PMI data for October. But the GBP strength did not last and by lunch-time Cable had reached a new intra-day low of 1.6330.

USDJPY was sidelined in Europe trading 89.85 to 90.25 with no news ahead to move the pair from dead-lock. Japanese markets will be closed on Tuesday 3rd November.

Market expectation
EURUSD: We remain positive for the Dollar as long as the pair can be held underneath of the 1.4820/50 level. Outlook is to retry support at 1.47, a break leads to 1.4650 and may yield 1.45 later on. A break on top stops the Dollars advance and would call for a retry of the 1.50 area by the end of the week.

GBPUSD: 1.6335 / 1.6435 the neutral range for today has held but while underneath of 1.6440 we favor Dollar strength for an attempt towards 1.60. A daily close above 1.6440 stops that view and could see the Pound reach last weeks top above 1.66 once again.

USDJPY: consolidation around the 90.00 area continues. With Japanese markets closed tomorrow we expect a slow day and small ranges, space to rise as high as 91.00 or fall to test the 89.30 support, expect the pair to trade sideways for a day or two.

AUDUSD currently in bullish territory may stretch its high towards 0.9110 with only minor resistance at 0.9065. Strong support at 0.90 is crucial in maintaining upward momentum.