The FED will also release minutes of its latest policy review

Good Morning,

- Dollar trade on hold ahead of FED’s minutes release later today …

- S&P and Dow Jones closing at new highs on Tuesday and the yen hit a new seven-year low as news of a snap election and a delayed tax increase in Japan support hopes for new stimulus measures a day after data showed the country was back in recession.

- The euro gains yesterday as investors cut some shorts positions on the common currency after a survey showed German analyst and investor sentiment rose in November for the first time in almost a year.

- Later today, attention will turn to minutes of the Bank of England's last policy meeting. The FED will also release minutes of its latest policy review. The BoE minutes are likely to show that policymakers want to keep interest rates lower for longer. In contrast, some traders expect the Fed minutes to sound relatively more hawkish.

- JP Morgan on EUR/USD: The recovery attempts of the EUR are still weak and lack follow-up once a minor resistance has been taken out, which is still painting a rather weak picture, notes JP Morgan. That said, JPM warns that above 1.2441 (minor 76.4 %), the risk of running into a stronger bounce persists, but it would take a break above 1.2612/14 (hourly trend/pivot) for the latter to jump scales. Such a break, according to JPM, would deliver strong evidence that we are at least dealing with a 4th wave rebound on higher scale which would most likely challenge the main T-zone at 1.2871/88 (int. 38.2 %/pivot. "A failure to clear 1.2612/14 and/or a break below 1.2441 would on the other hand get 1.2318/1.2260 (Fib's) and 1.2223 (w. trend) back in focus," JPM projects.

- The Bank of Japan kept monetary settings and its upbeat economic view unchanged on Wednesday in the wake of data showing the economy has slipped into recession, preferring to spend more time to gauge the effect of its surprise easing last month. On Tuesday, Premier Shinzo Abe said he would call an early election to seek a fresh mandate for his economic policies, and would postpone a second increase in the sales tax slated for 2015.

- The yen fell against the dollar after Abe's comments, extending recent losses in the wake of stimulus measures announced by Japan's central bank. The dollar rose to as high as 117.31 yen, its highest level since October 2007.

- BOJ: Japan's economy has continued to recover moderately as a trend, although some weakness particularly on the production side has remained due mainly to the effects of the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike. Overseas economies -- mainly advanced economies -- have been recovering, albeit with a lackluster performance still seen in part.

- RBA Governor Stevens spoke last night, noting in his address his familiar refrain that further declines in the AUD would be helpful to re-balance the economy. He hammered the point home in the Q&A, telling investors in FX markets they are underestimating the risk of a decline in the $A, indeed a material risk it will go lower. The AUD sold down from 0.8748 to 0.8648.

- The Australian economy looks like it’ll be taking a turn for the better next year. The not-so-good news, for borrowers at least, is that the upturn should pave the way for rising interest rates. The latest Westpac/Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, suggests economic growth will remain below trend into the first half of 2015.

- Greece’s government and its international creditors are deadlocked over a final round of measures required to release the last tranche of the country’s bailout, two people familiar with the negotiations said. Greek government is resisting pressure from creditors for additional budget savings in 2015.

- Watch today: BoJ update, BoE minutes, US housing starts.

Have a nice Day !