The euro rallies as Asian stocks rose after regional leaders pledge to maintain stimulus measures.
- The Asia-Pacific Economic Cooperation leaders said they would keep spending until there was durable growth as they agreed the economic recovery is not on a solid footing yet. The greenback weakened against most of its major counterparts as the Dollar Index lost 0.4% to 75.02. The EURUSD continues to rally from Friday's low of 1.4824 to levels above 1.4970 as of 06:40 GMT.
- The 21-APEC members, representing 54% of the global economy, did not mention currency distortions, which U.S. companies say give China unfair trade advantages. The U.S. dollar also weakened on speculation Federal Reserve officials will today reaffirm the central bank's pledge to keep interest rates low to support growth.
- Japan's GDP grew at an annual 4.8% pace in the third quarter, faster-than-anticipated, as the nation's capital spending rose 1.6% in the three months through September, boosting risk appetite.
- The declining greenback sent gold prices to yet another record high at $1130 an ounce, as demand increased for the precious metal as a safe-haven. Crude oil recovers to $77 a barrel from a one-month low as stronger than expected Japan GDP growth spurs expectations for demand recovery.
Currency to watch out for: EURUSD & USDJPY
- The EURUSD pivot point is at 1.4900 with a preference to enter into long positions at 1.4910
- The USDJPY pivot point is at 89.90 with a preference to enter into short positions at 89.85
Today's calendar and market movers:
- EU Core CPI year on year expected to remain unchanged at 1.1%
- US Core Retail Sales month on month expected to drop to 0.4%
- New York Fed Manufacturing expected to drop to 30.0
- US Fed Reserve Chairman Bernanke is due to speak about the economic outlook, in New York.
- US equities closed higher on Friday with the Dow up 0.7%, the S&P up 0.6% and the NASDAQ up 0.9%
- As of 07:00 GMT the Nikkei is trading at 0.21% and the Hang Seng at 1.38%