negative comments on the Eurozone
DATA TO LOOK OUT FOR
- Very quiet day for data today so markets will probably be shifted by trade volumes and comments from Finance officials.
- G20 meeting takes place, leaders will be urging European leaders to come to agreement on EFSF plans.
- This morning UK BBA mortgage approvals is released, last month’s figure of 33.4 was a slight rise on the month before, if figures continue to improve the pound could make headway.
- IMF leader Largard speaks at 5.15pm and ECB president Trichet speaks at 9.30, the markets will be closed by the time Trichet speaks but any negative comments on the Eurozone could affect what we wake up to on Monday morning.
ELSEWHERE
- EURUSD trims losses from 8 month low hitting a high of 1.3589
- Fed warning on economy fuels demand for liquid dollar causing it to rocket against a basket of currencies
- USDCAD rises to 11 month highs hitting 1.0360
- Gold falls more than 4% as traders see the dollars as the better investment
- Speculation now mounting that ECB might be looking at reducing interest rates by 50bps at the Oct 6th meeting, this would mark a dramatic turnaround in sentiment and would undoubtedly will have highly negative impact on the euro attractiveness.
- European equities open slightly higher this morning, recovering some of yesterday’s losses.
- The FT wrote this morning that the EU is planning to recapitalise 16 of the weakest European banks, no French banks were mentioned despite the recent reports of their unmanageable debt exposure.
IN THE UK
- GBP/USD crashes to 1 year low hitting 1.5327
- The pound’s trade weighted index falls to a 2 month low of 78.4 as analysts expect more QE as soon as two months time, keeping the pound weak.
- Sterling falls to record low versus Yen, tumbling to 116.964
- UK CBI Factory orders weakens in September falling to -9 adding to the pound’s woes.
- Stock markets fall around the world, £65 million pounds is wiped off the price of UK shares
| Current Spot Rates (9.00am) | |||||||||||
| USD | EUR | AUD | CAD | CHF | DKK | NOK | HKD | SEK | ZAR | JPY | |
| GBP | 1.5449 | 1.1425 | 1.5747 | 1.5864 | 1.3950 | 8.5042 | 8.9655 | 12.0440 | 10.57 | 12.84 | 117.807 |
| USD | 1.3515 | 1.0193 | 1.0269 | 0.9030 | 5.5047 | 5.8033 | 7.80 | 6.84 | 8.31 | 76.255 | |
| EUR | 0.7395 | 1.3783 | 1.3885 | 1.2210 | 7.4435 | 7.8473 | 10.54 | 9.25 | 11.24 | 103.113 | |
| Key Support and Resistance Levels | |||||||
| Support | Resistance | ||||||
| GBPUSD | 1.5340 | 1.5360 | 1.5390 | 1.5450 | 1.5480 | 1.5500 | |
| GBPEUR | 1.1293 | 1.1319 | 1.1357 | 1.1435 | 1.1474 | 1.1501 | |
| EURUSD | 1.3440 | 1.3460 | 1.3490 | 1.3550 | 1.3580 | 1.3600 | |
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