Focus turns to the Fed Interest Rate Decision
- The euro plummeted yesterday as Greece's unexpected announcement for a referendum on the second bailout deal troubles the world markets. Risk aversion in the market is heightened on fears about a rejection of the EU rescue deal and the risk of a Greek default. World equities dropped and against the dollar, the single currency fell to a three week low at 1.3608 from 1.3870, a decline of 1.9%. Versus the Japanese yen, the euro edged as low as 106.49 from 108.50. Attention now shifts to the G20 leaders and the summit on November 3-4.
- The US dollar edged higher against a basket of currencies yesterday as uncertainty in the financial markets spurred demand for the safe haven currency. Versus the Swiss franc, the greenback rose to 0.8835 from 0.8567. Today investors will be focusing on the Federal Reserve Interest Rate meeting and Fed Chairman Ben Bernanke press conference at 18:15 GMT. No change in the monetary policy is expected but any signs about the central bank's stance on the third round of quantitative easing will be closely watched. ADP Employment Change is also expected today and may be an indication for Friday's Non Farm Payrolls data.
- The British pound declined yesterday after Purchasing Manager Index Manufacturing revealed lower than expected figures in October, the lowest in two years. Sterling fell after the data on concerns about the country's slow growth and fears that the economy may fell back into recession. Gross Domestic Product was also revealed and data showed the economy expanded by 0.5% in the third quarter higher than expectations of a 0.3% but it failed to support the sterling. Versus the greenback, the pound slid as low as 1.5890 from 1.6092.
- Oil prices edged higher today rising to 92.73 dollars a barrel from 89.16. Gold fell to 1681.10 dollars an ounce today from 1723.98 but later rebounded to 1727.91. Silver dropped to 32.10 dollars an ounce today from 34.70.
SHORT @ 1.3800
SHORT @ 79.00
SHORT @ 1.6035
SHORT @ 1.0435
LONG @ 1704
SHORT @ 92.25
1data generated by Trading CentralTM, 2data obtained from easy-forex Inside ViewerTM
ADP Employment Change in October
Fed Interest Rate Decision
3at the time of writing
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