The euro trade stable on Wednesday after yesterday's drop

Good Morning,

- The euro trade stable on Wednesday after yesterday’s drop, as disappointing data out of Europe knocked the single currency, driving the dollar index to a one-week high.

- A slightly sell off for the euro from a nearly one-week high of $1.2770 on Tuesday, after a closely watched German ZEW survey fell below zero for the first time in nearly two years in October and the German government cut its growth forecasts.

- Fitch also warned on Tuesday it may cut France's credit ratings, saying the outlook for the country's economy had deteriorated.

- The dollar index, was slightly up about 0.1 percent to 85.936, but was still shy of a four-year high of 86.746 marked earlier this month.

- Fed's Williams: He would be open to another of round asset purchases if inflation trends were to fall significantly short of the U.S. central bank's target. Although he said it would take a big shift in the U.S. economic outlook for the Fed to restart its bond buying, the possibility of a new downturn in Europe and other global economic woes pose a risk to the United States.

- British inflation slowed in September to its lowest level in five years, data showed yesterday, prompting markets to push out the likely timing of an interest rate hike by the Bank of England and put the Sterling under pressure. Fell at $1.5877 level, reaching lows not seen since November 2013.

- Credit Agricole on EUR/USD: Weak data saps EUR but expect a pullback to 1.28 again. While we remain long-term EUR bears, we look for a pullback in the near-term near the 1.28 level, which is consistent with short-term fundamentals. Finally, we also note in the EZ the European Court of Justice began proceeding on the German challenge to the ECB’s OMT program, though no ruling is expected for months. Given the outlook for growth/inflation and the potential for sovereign QE this ruling will shape the market’s perceptions about the efficiency of an ECB policy response.

- An EU source cited by Reuters says Italy’s budget plan is likely to be seen as a “serious violation” of EU rules and be rejected. That is exactly the kind of thing that will drive a country out of the euro zone, sooner or later.

- The US dollar trade to its highest level in more than five years on its Canadian peer at C$1.1345 .

- Japanese Economics Minister Akira Amari said in parliament on Wednesday that the government is not pursuing a policy to intentionally weaken the yen, and that it is necessary to monitor any negative impact from rising import prices.

- China's inflation rate slowed more than expected in September to a near five-year low, heightening concerns that global growth is cooling and raising the pressure on governments to take bolder measures to shore up their economies.

- Central bank of Russia raises ruble corridor by 35 kopecks. Band now 36.7-45.7 as of yesterday. CB had sold $ 2.72 bln for value 14 Oct. A larger than usual increase in the band means they’re still struggling to keep a hold on the ruble selling.

- International Energy Agency said on Tuesday that demand for oil in 2015 will grow far slower than previously forecast, as global economies remain weak and prices may extend their sharp fall so long as OPEC shows no sign of countering a supply surge.

Have a nice Day !