Berlusconi to step down

The euro recorded gains against most of its major counterparts as Berlusconi confirmed on Tuesday that he will step down following the approval of a new budget law by the parliament. The new Greek Prime Minister has yet to be announced indicating significant differences in the negotiations between the ruling party and the opposition. Versus the US dollar, the single currency rose to 1.3824 from 1.3757. Against the Swiss franc, the euro retraced to 1.2370 from 1.2402. Swiss National Bank Vice-Chairman Jordan revealed that a requirement for further measures is an “enormous deflationary pressure. He also stressed his view that engaging in competitive devaluation would be wrong and could entail high costs.

The US dollar was softer against a basket of currencies as news coming from Europe boosted risk appetite. Against the Swiss franc, the US dollar dropped to 0.8947 from 0.9013. Against the Japanese yen, the greenback fell below 78, to 77.70 from 78.08 confirming views that the intervention was ineffective in changing the trend.

The Australian dollar rebounded to 1.0376 from 1.0361 against the US dollar, recovering initial loses from worst than expected Trade Balance. The British pound advanced to 1.6097 from 1.6062, against the US dollar as the Manufacturing Output came out marginally better than expected.

Oil prices surged to 96.51 dollars a barrel from 95.39. Gold fell to 1789.16 dollars an ounce from 1792.56. Silver rose to 35.01 dollars an ounce from 34.9125.

 OUTLOOK  ?

 

Pivot

Preference1

Sentiment2

 

EURUSD

1.3750

LONG @ 1.3750

§  37%  of deals buy EUR

 

USDJPY

79.00

SHORT @ 79.00

§  80%  of deals buy USD

 

GBPUSD

1.5940

LONG @ 1.5940

§  35%  of deals buy GBP

 

AUDUSD

1.0260

LONG @ 1.0260

§  48%  of deals buy AUD

 

GOLD

1778

LONG @ 1778

§  64%  of deals buy GOLD

 

OIL

95.00

LONG @ 95.00

§  11%  of deals buy OIL

1data generated by Trading Central™, 2data obtained from easy-forex Inside Viewer™

CALENDAR ?     

Currency

Time (GMT)

Event

Forecast

 

GBP

09:30

Trade Balance for September

-8.00 bil

 

USD

15:00

Wholesale Inventories for September

0.5%

 

USD

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