Market Brief
The Usd was mixed in the Asian session, as markets brace themselves for what could become a very interesting trading week. With the US Presidential election, RBA, BoE and ECB all scheduled to meet in the coming days, the potential event risk is high. The EurUsd traded higher to 1.2898 from 1.2734, while the UsdJpy traded up to 99.65 from 98.23. Carry trades got a boost, since risk aversion eased as equities rallied. The EurJpy traded to 1.28.44, while the AudJpy traded up to 68.34. Even the Emerging Markets continued to stage a decent rally in recent days. Asian regional stock markets were mixed, but European stock futures are pointing to a positive open. Commodities are firmer, with crude up 1.68% and gold up 1.40%. In addition, the VIX continued to decline at a moderate pace, down -4.78%. Online markets are giving presidential candidate Barack Obama roughly a 85% chance of wining the US election, but until the results are officially in markets will be at edge of their seats. Should the bookies be correct, we see this development as a positive for both the Usd and risk sentiment in a whole.
In the UK, CIPS/Market report on manufacturing should continue to fall despite September's absolute collapse (17 year low). Given the volatile nature of this economic, ready markets would expect at least a slight reversal. However, given the significant deterioration in the UK's domestic and global economy we expect further erosion.
| Global indexes | Current level | % Change |
| Nikkei 225 Index | 8,576.98 | -5.01 |
| Hang Seng Index | 14,291.84 | 2.31 |
| Shanghai Index | 1,719.77 | -0.52 |
| FTSE futures | 4,378.50 | 2.5 |
| DAX futures | 5,092.50 | 0.54 |
| SMI Futures | 6,153.21 | 5.31 |
| DJIA futures | 9,364.00 | 0.79 |
| World markets | Current level | % Change |
| Gold | 735.13 | 1.46 |
| Silver | 10.05 | 2.03 |
| VIX | 59.89 | -4.78 |
| Crude wti | 67.78 | -0.04 |
| USD Index | 85.18 | -0.52 |
| Todays calender | Estimates | Previous | Country / GMT |
| PMI Manufacturing (Oct Final) | 41.3 | 41.3p | EZ / 9.00 |
| CIPS/Markit Report on Manufacturing (Oct) | 40.1 | 41 | UK / 9.30 |
| ISM Manufacturing Index (Oct) | 42 | 43.5 | US / 15.00 |
| Construction Spending (Sep) | -0.80% | 0.00% | US / 15.00 |
| King, Darling & Turner testify to Treas. Com. | -- | -- | UK / 16.00 |
Currency Tech
AUDUSD
R 3: 0.7065
R 2: 0.6893
R 1: 0.6846
CURRENT: 0.6829
S 1: 0.6674
S 2: 0.6550
S 3: 0.6338
EURJPY
R 3: 131.49
R 2: 131.06
R 1: 127.83
CURRENT: 127.33
S 1: 125.42
S 2: 122.23
S 3: 121.40
USDSGD
R 3: 1.5039
R 2: 1.4948
R 1: 1.4834
CURRENT: 1.4682
S 1: 1.4660
S 2: 1.4585
S 3: 1.4554
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
