The US dollar was again under pressure - the dollar index basket (USDX) finished the trading day at the mark of 88.58. At the moment the dollar index fell below the strong support level of 88.19, but at the end of the trading day it was able to recover some of lost ground. The pair EUR/USD was in demand most of the day amid the short positions closure. There are a lot of market short positions and in this regard we have seen a volatility spike within the euro/dollar. However, after the London banks closure there was a reversal.
The UK October negative industrial production release encouraged bears to open the short positions within the pair GBP/USD and at the moment quotations reached the level of 1.5630, but traders sold the US dollar along the entire market that also supported the demand for the British pound. The pair could reach the level of 1.5718 during the trades.
The Japanese yen significantly devalued last week and it is not surprising that traders started to unload their portfolios closing "longs". It should be noted that the correction within the pair USD/JPY was formed and impressive sales on the US and Japan stock markets only increased the downward pressure on the US dollar.