USD Trading Outlook (25-10-2012)

U.S. Dollar Trading (USD) traders got mixed action yesterday with a rally in Europe reversed later in the US session. Most FX pairs were little changed with the risk sensitive currencies doing the best. The FOMC was a non event with rates kept at 0.25% and the language was not changed in the accompanying statement. China’s October HSBC Flash Manufacturing PMI sparked some buying with an increase to 49.1 a three month high and reversal of the recent slide in the survey. Looking ahead, Weekly Jobless Claims forecast at 370k vs. 388k previously. Also September Pending Home Sales forecast at 2.1% vs. -2.6% previously.