Market Brief

Risk appetite stayed weak in the Asian session, after Wall Street closed lower but, overall, most of the trading in currencies and commodities was well in their ranges. The EURUSD traded between 1.4880 and 1.4940, while spot Gold traded between $1140 and $1147. With no first tier economic releases scheduled today, we don't expect any one way trade of break out of the monthly ranges. But ranges can also be very profitable, especially the EURCHF. The USDJPY remains heavy below 90.61 high, with the break of 88.74 low opening the 88.01 key support.

        As was universally expected, the BoJ held its uncollateralized overnight cash rate at 0.1%. The decision was unanimous and the BoJ statement stated that the domestic economy was improving but would continue with its extremely accommodative monetary policy. Finance Minister Fujii warned about the dangers of rising bond yields, which could counteract the ultra loose monetary policy and small business improvement initiatives.

        Today, China's Central Bank Governor, Zhou Xiao Chuan, said “It’s like watching a tournament,...We just watch the game. Regardless who wins or loses, the issue of whether the winner or loser benefits the spectator doesn’t arise. In short, don't expect pressure from the West to have any influence on China's exchange rate mechanism.

      There is little economic data of note today. More significantly, speakers in Frankfurt today include ECB President Trichet and Bundesbank President Weber. Outside the euro area, SNB President Roth will speak in Fribourg.

G10 Advancers and Decliners vs USD

 

AUD

0.19

width=108.571428571429
 

JPY

0.04

width=22.8571428571429
 

SEK

0.03

width=17.1428571428571
 

NZD

0.02

width=11.4285714285714
 

DKK

0.01

width=5.71428571428571
width=5.71428571428571

NOK

-0.01

 
width=11.4285714285714

CAD

-0.02

 
width=11.4285714285714

EUR

-0.02

 
width=34.2857142857143

CHF

-0.06

 
width=120

GBP

-0.21

 

 Global Indexes

 Current Level

 % Change

Nikkei 225 Index

9,497.68

- 0.54

Hang Seng Index

22,455.84

- 0.82

Shanghai Index

3,308.35

- 0.36

FTSE 100 Index

5,289.82

+ 0.41

DAX Index

5,735.38

+ 0.59

SMI Index

6,302.18

+ 0.24

S&P future

1,094.30

+ 0.01

 World Markets

 Current Level

 % Change

Gold

1,145.38

+ 0.06

Silver

18.51

- 0.13

VIX

22.63

+ 4.62

Crude wti

77.55

+ 0.11

USD Index

75.33

+ 0.07

Todays Calender

Estimates

Previous

Country/GMT

SNB Chairman Roth speaks at the University of Frib

----

CHF / 09.15

ECB President Trichet gives the keynote address

----

EUR / 10.30

Core Inflation (% y/y)Oct2.82.9PLN / 12.00
GDP (% y/y)Q3-6.7-10.3

MXN / 19.30

Currency Tech

AUDUSD
R 2: 0.9405
R 1: 0.9335
CURRENT: 0.9185
S 1: 0.9130
S 2: 0.9095

USDCAD
R 2: 1.0780
R 1: 1.0689
CURRENT: 1.0647
S 1: 1.0545
S 2: 1.0450

EURJPY
R 2: 134.45
R 1: 134.02
CURRENT: 132.46
S 1: 131.75
S 2: 131.00

USDMXN
R 2: 13.135
R 1: 13.088
CURRENT: 13.044
S 1: 12.999
S 2: 12.945