The Euro trade in a positive momentum above 1.28 level

Good Morning,

- The Euro trade in a positive momentum above 1.28 level…

- Asian stocks: Japan's Nikkei -2.03%, Hong Kong's Hang Seng -0.29% (07:05 GMT), Korea's Kospi -0.77%, Australia's ASX 200 0.10% and China's Shanghai -0.73%.

- Exports from Switzerland rose by a real 2.2 percent in September to 17.5 billion Swiss francs. Overall Swiss trade surplus widens to 2.5 bln chf in Sept.

- Germany's central bank said on Monday the German economy risks coming dangerously close to recession, forecasting little or no growth in the second half of 2014. The Bundesbank's gloomy assessment raises the prospect Germany's economy could stay weak, compounding the problems of the 18-country currency bloc, whose economy is already slowing to a virtual halt. German producer prices declined for the 14th consecutive month, data showed yesterday, highlighting the disinflationary pressures causing concern to policymakers.

- Fed's Rosengren: The recent volatility in financial markets reinforces the need for the Federal Reserve to be patient with its policy stimulus and to clearly tie an eventual interest-rate rise to improving economic conditions. Rosengren said that while it would take a few more weeks to understand the real economic fallout from the market selloff, he could "easily imagine" a scenario in which the U.S. central bank keeps rates near zero until 2016.

- Dallas Federal Reserve President Richard Fisher told CNBC television that last week's turbulent trading should not stop the Fed from ending its third round of quantitative easing. Dallas Fed President Richard Fisher also wrote in an Economic Letter released Monday the economy could be fully recovered from the effects of the financial crisis and recession as early as next year.

- The consensus view is that the Fed will decide to wrap up its bond purchases for QE3 next week, at its Oct 28-29 policy meeting, while short-term interest rates futures implied markets do not expect the U.S. central bank to raise rates until late 2015.

- Goldman Sachs on EUR/USD: The next level higher in EUR/USD is 38.2% of the drop since Jul. 1 st at 1.2959, notes Goldman Sachs. "Given the impulsive nature of the decline since May, and the likelihood that it’s now in its 4 th wave of a 5- wave sequence off the May high, it doesn’t seem too likely that the market will extend further than that point," GS argues. "It should therefore be attractive to consider establishing bearish exposure targeting the ’12 low (the bottom of the wedge) at ~1.20 with a close stop above 38.2% retrace at 1.2959," GS advises.

- China's economy grew 7.3 percent between July and September from a year earlier, slightly above expectations. However, it slowed from 7.5 percent in the second quarter, the weakest in nearly six years. Fixed asset investment and retail sales figures were weaker than expected, suggesting that Beijing still has reason to announce a fresh round of economic support measures though analysts don't see aggressive stimulus steps.

- The Aussie jumped a quarter of a U.S. cent after the Chinese GDP data release , as a liquid proxy of China's growth prospects given Australia's large trade exposure to the Asian giant.

- Watch today: US store sales concerns, US home sales.

Have a nice Day!