Forex: Euro Bounces Back As Policy Makers Prepare For Bailout, Shows Muted Reaction To 3Q GDP

Talking Points

* Japanese Yen: Weakens Across the Board
* British Pound: Maintains Upward Trend From May
* Euro: 3Q GDP Falls Short of Expectations
* U.S. Dollar: U. of Michigan Confidence Survey on Tap


The Euro showed little reaction to the weaker-than-expected 3Q GDP reading as the exchange rate rallied to a high...

Key Overnight Developments

* Australian Employment Report Yields Little More than Volatility
* Moody’s Raises Chinese Debt Rating, Overshadows Rate Hike Fears
* Major Currencies Range-Bound Ahead of G20 Leaders’ Summit

The Euro and the British Pound were little changed in overnight trade, with the single currency drifting sideways 1.38 to the US Dollar while sterling probed cautiously above 1.61 to add a meager 0.1 percent against the greenback....

Fundamental Headlines

• Ireland’s Fate Tied To Doomed Banks – Wall Street Journal

• Commodity Prices Surge – Wall Street Journal...

Major Currencies vs. US Dollar (% change)



General Comment: US Dollar and Fed QE – The Morning After

The hangover after last week’s dizzying surge in risk appetite has descended upon the markets, with the US Dollar rallying decisively against most major currencies having reached multi-year lows after the Federal...

Talking Points

* Japanese Yen: Rallies Across The Board
* British Pound: Holds Narrow Range
* Euro: Investor Confidence Advances to Three-Year High
* U.S. Dollar: Fed Officials on Tap

The Euro slipped to a low of 1.3890 on Monday as investors scaled back their appetite for risk, and the single-currency may depreciate throughout the North American trade as risk sentiment continues to dictate price action in the foreign exchange market....