FX.co ★ Fundamental Analysis For October 18, 2012

A marked optimism about the summit meeting of European leaders which is held on Thursday and Friday in Brussels is giving bullish strength relative to the euro and to a lesser extent the British pound and the Swiss franc.
The single currency failed to break 1.31during the Wednesday's session, while the pound was around 1.62 during early American trading session.
The Australian dollar retook power in the last hours after China announced strong growth in its GDP. The Aussie is very dependent on China’s current situation. This country is the main destination for Australian exports.
As for the yen, it is bearish technically (bullish on charts) against the dollar. There is still the possibility of intervention by the Bank of Japan, which has not yet successful in finding the right action to prevent further strengthening of the yen against the dollar.
Of course, the general weakness of the U.S. currency concealed a stronger yen each day.
During Thursday's session, retail sales will be released in the UK at 4:30 Eastern.