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EUR/USD retreats from peaks

FXstreet.com (Edinburgh) -After dropping to sub-1.3560 overnight, the single currency managed to gather some traction and push the EUR/USD back to the 1.3565/70 region.

EUR/USD weaker on risk aversion

Markets are tilted to the risk-off trade on Tuesday amidst increasing concerns regarding the US government shutdown and the debt ceiling negotiations. Data wise, the most relevant release will be German Factory Orders, expected to have expanded at a monthly pace of 1.2% in August. Across the pond, the speeches by Pianalto and Plosser will be in the limelight. “In general the euro has also been well supported recently and today’s German factory orders might add further support underlining that the euro zone economy continues to improve”, suggested analyst Arne L. Rasmussen at Danske Bank.

EUR/USD key levels

The pair is now losing 0.11% at 1.3566 and a breakdown of 1.3553 (low Oct.7) would target 1.3540 (MA10d) en route to 1.3538 (low Oct.4). On the flip side, the initial resistance lies at 1.3632 (high Oct.4) followed by 1.3646 (high Oct.3) and then 1.3660 (high Feb.4).

Switzerland: Unemployment Rate unchanged at 3.2% in September

The seasonally adjusted Swiss Unemployment Rate remained unchanged for the fourth running month at 3.2% in September, the State Secretariat for Economic Affairs (SECO) revealed on Tuesday. This reading is in line with forecasts.
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