LONDON (SHARECAST) - This is a review of the elements likely to affect foreign exchange (forex) trading in the European session:
Europe Seeks to Contain Spanish Troubles - Bloomberg
Economic recovery ‘on the ropes’ - FT
Chavez win means more of the same for Venezuela oil - Reuters
Turkey, Syria Continue to Trade Fire - WSJ
Turning Iran’s Currency Crisis Into a Revolution - Bloomberg
US Braces for Worst Earnings Season Since 2009 - CNBC
US Companies Flock to Britain for Tax Reasons - CNBC
Romney Hot on Obama’s Heels After Debate, Jobs Report - CNBC
California Gasoline Prices Hit an All-Time High - CNBC
Chavez’s Election Win Sets Stage for 20-Year Venezuelan Rule - Bloomberg
Brazil ruling party struggles in big cities in municipal vote - Reuters
East Asia Growth Seen at 11-Year Low on China Slowdown - Bloomberg
China must reform or risk crisis, experts warn new leader - Reuters
Slower China Weighs on Indonesia's Growth - WSJ
Dim Sum Yields Fall as Offshore Yuan Strengthens - Bloomberg
Southeast Asia splashes out on defence, mostly maritime - FT
Seoul to Extend Missile Range - WSJ
Launch of Europe Bailout Fund Puts Ball Back in Spain’s Court - CNBC
Merkel Arrival in Athens to Be Met by Anti-Austerity Protesters - Bloomberg
EU Eyes Cloud Computing to Kick Start Economy - CNBC
UK austerity squeeze set to run until 2018 - FT
Cameron Suggests Two-Tier System for EU Budget - Bloomberg
For Ireland, More Austerity Is a Strain - WSJ
Vivendi weighs up €4bn Moroccan telecom sale - FT
EUR: The main euro cross-rates take a deserved pause after their recent rally. Today’s Eurogroup meeting to be held in Luxembourg will be focused on Greece and Spain. We have a data-shy day in Europe and in the US. EUR-USD consolidates under 1.30 after reaching a two-week high at 1.30716 last Friday. EUR-JPY retraces below the 102 zone.
GBP: The sterling crosses move in perfect synch with the euro trades. During the weekend, UK Prime Minister David Cameron said that the austerity squeeze is set to run until 2018. Cameron underlined that the rich will bear the brunt of higher taxes but away from 75% marginal rate at income tax like in France. He also suggested a two-tier system for the EU budget. Cable trades below 1.6100 while GBP-JPY retraces under 126.00. EUR-GBP is still holding above 0.8050.
CHF: The Swiss franc is more subdued. EUR-CHF trades sideways in the 1.2110 zone and USD-CHF is hedging up towards 0.9350. Despite positive unemployment figures in Switzerland, CPI continues to be in deflationary territory.
Nordics: The Swedish krona and the Norwegian kroner start the week red tainted. EUR-SEK is hovering near 8.60 and EUR-NOK does the same close to 7.40.
USD & JPY: The US dollar and the Japanese yen are well bid in a risk-on context. Despite the doubts surrounding the September US jobless report, recent macroeconomic data points to a slowdown in economic activity. USD-JPY moves circa 78.30.
CAD, AUD & NZD: The three dollars are back in the red, especially against the yen. European woes are shadowing a strong September Services PMI in China at 54.3 vs previous 52,0. The composite number crawls back above the 50 line. The tertiary sector is still fairing better than the manufacturing sector. China’s hard landing is mitigated by services performance.