The euro was up at $1.27 level

Good Morning,

- The euro was up at $1.27 level, edging away from a two-week low of $1.2614 hit last week in wake of concerns about the bank stress tests.

- Asian equities rose on Monday, taking heart from economic data and slightly better than expected health checks on euro zone banks, that eased recent global growth fears and helped revive investors' risk appetite. Japan's Nikkei 0.63%, Hong Kong's Hang Seng -0.79% (07:25 GMT), Korea's Kospi 0.33%, Australia's ASX 200 0.79% and China's Shanghai -0.51%.

- ECB’s Noyer: Level of mobilization needed for the stress tests would be difficult to repeat regularly, some banks will want to communicate quickly and clearly the results of their stress tests, and others will breathe a large sigh of relief no doubt.

- Twenty-five banks including Italy’s Banca Monte dei Paschi di Siena SpA failed a stress test led by the European Central Bank, which said almost half of them must act to raise more capital. The central bank identified a 25 billion-euro shortfall ($32 billion) for the region’s lenders, and said 12 of them have now raised enough funds. Eleven banks need more capital.

- U.S. home sales rose to a six-year high, while Britain's economy expanded 0.7 percent in the third quarter, data showed on Friday.

- Bank of America on USD: BofA is bullish the USD and long the greenback against both the AUD and NZD. BofA is also looking to initiate a short EUR/USD position. Beginning with AUD/USD, BofA thinks that the consolidation since early Oct is drawing to a conclusion and the larger bear trend is about to resume. "We target 0.8525 ahead of 0.8415. Price action should not get above 0.8861, while a break of the Oct-09 high at 0.8900 would invalidate our bearish view and stop us out of our short," BofA projects. BofA maintains a short AUD/USD from 0.8818 targeting 0.8525. For NZD/USD, BofA is also bearish, short, and looking to add on bounces. "The impulsive break of 3wk wedge support says the larger downtrend has resumed for 0.7627 and eventually the Nov’11 lows at 0.7371," BofA adds. BofA runs a short NZD/USD position from 0.7852 targeting 0.7627 and runs a limit order to sell at 0.7888. Finally, BofA is bearish EUR/USD and looking for further weakness to 1.2470/50 ahead of the 200m MA at 1.2300 before greater signs of basing emerge. "Bounces should be sold," BofA advise.

- The dollar advanced to a three-week high against the yen.

- The Federal Reserve is expected to close a chapter in history this week and announce the conclusion of its massive stimulus program. Known as quantitative easing, the program is widely credited with driving investors back into stocks in the aftermath of the financial crisis.

- The Brazilian real's had a muted response after leftist President Dilma Rousseff narrowly won re-election on Sunday. Investors have generally disliked Rousseff's interventionist management of state-run companies and other sectors of the economy, but some traders think her re-election is already priced in as the real BRL has fallen nearly 10 percent since early September.

- Oil extended losses, after Goldman Sachs cut its price forecasts. Crude continued on a months-long rout as signs of rising global supply threatened deeper losses.

- Watch today: German business sentiment, US services sector purchasing managers' index, US Pending Home Sales.

Have a nice Week !