EUR/USD muted near 1.0880 on IFO
The pair kept the daily range despite the German IFO has surprised markets to the upside for the current month.In fact, Business Climate, Expectations and Current Assessment in Germany have all come in above expectations for the month of October at 110.5, 115 and 106.1, respectively. Further data in Euroland today also showed Italian Industrial Sales and Industrial Orders improving during August from July?s readings.Today?s results add to Monday?s better-than-expected advanced PMI figures in Germany, France and the EMU, keeping dips in the pair shallow amidst the prevailing bid tone around the buck.Later in the session, President M.Draghi will give a lecture on ?Stability, Equity and Monetary Policy? in Berlin, while the S&P/Case-Shiller index, the IBD/TIPP Economic Optimism index and the Consumer Confidence gauge tracked by the Conference Board are all due across the pond.The pair is now up 0.04% at 1.0884 facing the next resistance at 1.0948 (2014-2016 resistance line) followed by 1.1012 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).

GBP/USD cut losses to 1.2230 ahead of Carney
The Sterling keeps trading within a very narrow range vs. the greenback during the first half of the week, sending GBP/USD to the 1.2220/30 band.Although it manages well to remain above the key 1.2200 handle vs. the greenback, further GBP gains appear so far limited around the 1.2330 area while decent support seems to have emerged near 1.2080 post flash crash.The USD-dynamics seems to have returned as the main drivers behind the pair?s price action, as hard Brexit fears appear somewhat mitigated for the time being.Anyway, today?s speech by Governor M.Carney on the economic consequences of Brexit before the House of Lords Economic Committee carries the potential to bring in some volatility around the British pound.On the US data front, the S&P/Case-Shiller index is due followed by the IBD/TIPP Economic Optimism index and CB?s Consumer Confidence for the month of October.As of writing the pair is losing 0.09% at 1.2228 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-?flash crash? Oct.7). On the other hand, a break above 1.2327 (high Oct.18) would expose 1.2377 (high Oct.11) and finally 1.2420 (20-day sma).

AUD/USD now looks to CPI figures UOB
Strategist at UOB Group Lee Sue Ann has noted the relevance of the upcoming CPI results for the Aussie dollar and potential RBA easing.?The Reserve Bank of Australia (RBA) has underlined the importance of this upcoming inflation report for policy when it next meets on 1 November, and with good reasons?.?It was surprisingly low inflation readings in 1Q and 2Q that led directly to rate cuts in May and August, leaving the cash rate at an historic low of 1.5%. Although much also depends on the RBA?s outlook on both the job and housing markets, a downside surprise in this 3Q CPI report would certainly lead the RBA to reinstate a clear easing bias?.?We believe it would take a very weak and disappointing inflation number to push the RBA into easing yet further. Otherwise, signs of stability in the Australian economy, alongside the latest speech by Lowe, support our long-held view for the RBA to keep rates steady for now. On AUD/USD, barring an extremely low Q3 Australian CPI print, the currency pair is likely to stay supported around the 0.760-levels and may drift higher towards 0.770 in the near term.

EUR/GBP fails to gain traction from upbeat German IFO
The EUR/GBP cross maintained range-bound price action around 0.8900 handle and failed to gain any impetus from German IFO index. German IFO business climate index for October came-in at 110.5, better-than-expected and previous month's 109.5. Meanwhile, the current assessment index rose to 115.0 and expectations index also surpassed consensus estimates and printed 106.1 for October. Upbeat German IFO index provided little respite for the shared currency but seems to have extended support to limit losses for the time being. Meanwhile, concerns of 'hard Brexit' continues to undermine the British Pound and has led to a near-term range-bound price action around the EUR/GBP cross.Later during the day, speeches from ECB President Mario Draghi and BoE Governor Mark Carney will grab all the attention and trigger a fresh bout of volatility in the FX market, eventually triggering a fresh leg of directional move for the cross.From current levels, 0.8915-20 region seems to act as immediate barrier above which the cross is likely to extend the recovery momentum towards 0.8975 resistance area before attempting a move beyond 0.9000 psychological mark. On the downside, a follow through selling pressure below 0.8885 area is likely to accelerate the slide immediately towards 0.8840 support en-route its next major support near 0.8800 handle.

USD/CHF advances further to test 0.9950
The US dollar caught fresh bids versus its Swiss franc over the last hour, driving USD/CHF higher to reclaim 0.9950 levels.Currently, the USD/CHF pair trades +0.16% higher near fresh session highs of 0.9951, having found strong support just ahead of 0.99 handle. The USD/CHF pair is seen consolidating the upside, as the bulls gear up for a run-up towards parity amid ongoing bullish momentum seen in the US dollar versus its six major peers.Meanwhile, the USD index regains poise and jumps +0.15% to retest daily tops posted previously at 98.81 levels.Nothing of note for the major in the European session and hence, attention turns towards the US macro updates due later in the NA session.To the upside, the next resistance is located at 0.9962 (multi-month highs) and above which it could extend gains to 0.9974 (mid-Fed high) and 1.0000 (parity) next. To the downside, immediate support might be located at 0.9910 (daily low) and below that 0.9864 (20-DMA) and from there to 0.9795 (50-DMA).

Gold aiming back towards 200-DMA
Having posted a session low at $1262, Gold inched higher and has now reversed Monday's minor losses but remained below the very important 200-day SMA. Currently trading at a fresh session high level around $1269 region, cautious opening for the European equity markets supported the precious metal's safe-haven appeal and assisted a minor recovery from session lows. On Monday, the precious metal reversed early gains and turned lower amid growing expectations that the Federal Reserve would eventually hike rates in December, which tends to weigh on non-yielding assets. Moreover, Fed rate-hike bets was seen boosting the greenback, with the broader US Dollar Index rising to fresh 8-month highs, and further dented demand for dollar-denominated commodities - like gold. Later during NA session, the release of Conference Board's consumer confidence index for October might provide fresh impetus for short-term traders. Looking at the broader picture, the metal remains confined within a 5-day old trading range and hence, it would be prudent to wait for a decisive break through the near-term trading range before confirming the commodity's near-term trajectory.From current levels, $1273-75 region remains immediate resistance, which if cleared decisively seems to pave way for additional recovery towards $1290 strong resistance. On the downside, $1262-60 area seems to have emerged as immediate strong support below which the metal is likely to immediately drift towards $1252-50 support zone before eventually dropping to monthly lows support near $1240 region.

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