The prospect of the Federal Reserves first term auction for $20 billion didn’t seem to boost the risk sensitive USDJPY Monday morning. Not even the unexpected announcement from the ECB that they would offer unlimited funds below the market rate could revive traders’ taste for risk. In fact, the usually uncorrelated dollar-based pair actually joined its brethren by easing off resistance seen building around 113.50/75. From the economic calendar overnight, only the Tertiary Industry index for October was garnering interest. A 1.1 percent pick up in the service-based figure was only slightly below the market’s consensus for a rebound. The breakdown revealed that activity in retail, financial and software services were the leaders for the month.
[I]Written By: John Kicklighter, Currency Analyst for DailyFX.com[/I]