At the Close. The bittersweet symphony.

18:00CET

The tenth month of the year comes to an end with a really bad taste in my mouth. I believe I can now call off (although I'd need a move above 1,355 to complete my disappointment) my Gold H&S call (4hr chart), and that is to my greatest disappointment, as I would've expected some kiind of fireworks today and a nice month-end close for the USD. But it was not meant to be. To complete the bitter part of the story, the USD/JPY attracted a lot of retailers on the long side, now looking for a double bottom around 80.40, and that is pushing the unit to test recent lows again, not really letting the monopoly-greenback to raise properly. Add to that the very much negative thing of again seeing AUD/USD and EUR/USD shorts piling up in the losers' side, and that means short squeezes every now and then.

But let's switch to the sweet part of this month-end symphony. The MONTHLY CHART of USD/CHF is showing a big reversal hammer candle, which should be supportive of my view of at least this pair going back above parity, and staying there for a while. Add as a supporting factor the still valid diamond pattern in EUR/USD, with top of the last part @ 1.4030 and support @ 1.3750, so a break of the support is needed for the low 1.30s on the long run to be seen. As I said earlier, if the USD/JPY positioning (and AUD!) would shift to negative USD, that would create the base for a double bottom, and certainly would mark a real base for the USD.

All in all, I have to say that there were days in this October where I felt the USD would really tank to hell, but it managed to survive on a technical basis, and who knows, the 2 months left to complete this 2010 may bring us some surprises to the upside. But first, losers need to shift positions, something they marginally did this week (and we saw how good it was for the greeny-backy), but that did not last long. Best wishes for the upcoming November, especially if you are one of those gutsy technical traders that resist to accept the official monopoly-greeny view. Also, let's not forget the big event for November, apart from the usual NFP-day, which is taking place on the 3rd of the month, when the helicopter of the Fed will fly over all of us traders and will unleash its final decision on QE2 (bond buying program)....the market is going to go crazy after the event, there's little doubt about that.

Before leaving, here's how things are ahead of the monthly close when it comes to losers' (retailers) positioning:

Oct 29, 2010 18:00 GMT+0200
READING: %LONG/%SHORT

   1. AUD/USD
      48.52% 51.48%
   2. EUR/CHF
      58.55% 41.45%
   3. EUR/GBP
      47.00% 53.00%
   4. EUR/JPY
      60.79% 39.21%
   5. EUR/USD
      42.85% 57.15%
   6. GBP/JPY
      63.01% 36.99%
   7. GBP/USD
      36.46% 63.54%
   8. USD/CAD
      60.66% 39.34%
   9. USD/CHF
      74.50% 25.50%
  10. USD/JPY
      82.65% 17.35%

I'm Tony Juste, CMA of CTAinvestor.com and www.twitter.com/ctainvestor . Thanks for being there, I look forward to seeing you all again next month! (i.e., in 2 days time).

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USD/JPY techs

12:14CET

The unit bounced very nicely off broken resistance line, now dynamic support line @ 80.50 (perfect low for today thus far).

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FX retailers' positioning at this hour

11:40CET

This is how things stand at this hour, hopefully AUD/USD shorts will leave parity in favor of longs soon, and a USD propelling across the board will be seen. By the way, Gold's right shoulder of the H&S mentioned in 4hr chart keeps forming, has not been negated, and if we see the unit below 1,330 we may have some real fireworks. We are talking of a major mid-term shift here.

Oct 29, 2010 11:20 GMT+0200
READING: %SHORTS-%LONGS
   1. AUD/USD
      48.53% 51.47%
   2. EUR/CHF
      59.06% 40.94%
   3. EUR/GBP
      46.62% 53.38%
   4. EUR/JPY
      60.05% 39.95%
   5. EUR/USD
      41.61% 58.39%
   6. GBP/JPY
      62.90% 37.10%
   7. GBP/USD
      35.17% 64.83%
   8. USD/CAD
      61.46% 38.54%
   9. USD/CHF
      75.93% 24.07%
  10. USD/JPY
      82.02% 17.98%

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Real-time market analysis

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Today's technical game so far......

11:10CET

The funny tech story so far this morning is that JPY stength means EUR and GBP losses, and JPY selling means EUR and GBP recovery. Funny? Not that much, but you know, that's what the market likes to play and is playing it.....

EUR/USD hit extreme OS territory @ 1.3820 and has bounced a bit, looking for 1.3850-60 to re-start shorts, I don't feel the unit will finish the month above 1.38.

Posted via email from MT4

EU 'haircut' plans rattle bondholders - Telegraph.co.uk

09:52CET

Investors face large potential losses on eurozone debt under German plans likely to win backing from EU leaders on Friday – risking a boycott of Greek, Irish, and Portuguese bonds.

http://www.telegraph.co.uk/finance/economics/8094324/EU-haircut-plans-rattle-bondholders.html

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China To Face Strong Inflation Pressure Next 2 Years - Economist

09:49CET

An economist at a Chinese government think tank said he expects the country to face strong inflationary pressure in the next two years and the government to introduce further tightening measures in the property market, the Shanghai Securities News reported Friday. Fan Jianping, a senior economist at the State Information Center, said he expects the government to raise interest rates further and introduce a residential real-estate tax next year, according to the report. Fan also said yuan appreciation will continue to exert pressure on exporters. He recommended they price in a 5% appreciation in the local currency for orders to be settled in six months to ensure profitability.

http://www.cnstock.com

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Economic Data for Today

09:33CET

10:30 - UK - Net Lending to individuals **
11:30 - CHF - Swiss KOF barometer ****
14:30 - CAD - GDP figures ***
14:30 - USD - Advance GDP *****
15:45 - USD - Chicago PMI ***
15:55 - USD - Revised UOM sentiment **

Data is valued 1* to 5* depending on what I expect the market reaction will be, 1* lowest.

Posted via email from MT4

At the Open. A good month-end close for the USD?

09:23CET

Good morning everyone, hope you are fine. Techs have worked well overnight and the majors have retreated well off their highs, and Gold has not been able to break 1,345 on the upside, which is a good signal that the right shoulder of the H&S pattern in the 4hr chart still may be considered valid.

The mid 1.59 level was a good one to short Cable, and so it was anything above 1.39 in EUR/USD or anything above 0.98 in Aussie, as I yesterday pointed out in my closing post. Technical reasoning lay behind what I stated, and I feel that today Cable should be the one falling the most against the other majors, as the unit has been underpinned so far by EUR/GBP sell-off, but in an scenario of further Euro falling, the GBP should follow as well.

I definitely think we are far from over in this new round of USD buying, and we've just seen a bit of it, so I guerss we might be seeing some real fireworks today ahead of the monthly close.

This is how retail traders (losers) are positioning themselves at the moment (I hope the AUD positioning shifts for good soon, hate to see it negative....)

Oct 29, 2010 09:20 GMT+0200
READING %LONG // %SHORT

   1. AUD/USD
      47.42% 52.58%
   2. EUR/CHF
      58.09% 41.91%
   3. EUR/GBP
      52.26% 47.74%
   4. EUR/JPY
      57.85% 42.15%
   5. EUR/USD
      40.49% 59.51%
   6. GBP/JPY
      63.20% 36.80%
   7. GBP/USD
      31.14% 68.86%
   8. USD/CAD
      61.85% 38.15%
   9. USD/CHF
      74.41% 25.59%
  10. USD/JPY
      81.66% 18.34%

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At the Close. Very much not what I expected, and you?

18:14CET

Well, it's not that I will say it's been a disappointing day....but a very disappointing day indeed. Not because of the lack of progress by the USD... one may expect that, particularly when watching at USD/CHF and USD/JPY retail positioning, but not in Euro or AUD, where we were seeing some big momentum shift, even change to net long in AUD/USD, which has not served the cause of a better move by the USD, rather the contrary.

I don't like excuses and hate when someone blames this or that for what is happening, I just can't stand that. Today it was a USD-selling day. Period. But technically speaking, and even from a contrarian point of view, it was not a justified move, but that's what the market is, a big box of surprises.

Technically, again, anything in the mid 1.59s is a good short in Cable, anything in the 0.98s is good short in the AUD and anything above 1.39 bodes well for a short in Euro. Whether they will turn out to be monster trades, I honestly have a bit more reserves than in the morning, when I saw the H&S in AUD and Gold printing to perfection, and ready to make the units tank...but now with Gold @ 1,343, testing a key dynamic resistance line, it's kind of a moot point to go over my 'pattern predictions' again. However, if Gold does not break 1,345-50 we may still have a cause for a better USD move....that would be lovely.

Before leaving, here's how retailers are positioning themselves at this hour (I hate to see the AUD back to net short....).

Oct 28, 2010 18:00 GMT+0200
READING: %LONG // %SHORT

   1. AUD/USD
      49.92% 50.08%
   2. EUR/CHF
      57.40% 42.60%
   3. EUR/GBP
      53.32% 46.68%
   4. EUR/JPY
      54.76% 45.24%
   5. EUR/USD
      43.63% 56.37%
   6. GBP/JPY
      60.74% 39.26%
   7. GBP/USD
      34.82% 65.18%
   8. USD/CAD
      60.25% 39.75%
   9. USD/CHF
      73.11% 26.89%
  10. USD/JPY
      80.14% 19.86%

I'm Tony Juste, thanks for watching this blog. I look forward to your company tomorrow. Real-time alerts @ www.twitter.com/ctainvestor. />

Posted via email from MT4

FX lessons from a crazy market

17:33CET

What we’ve learned in recent weeks:

   1. The market is uncomfortable holding EUR/USD longs above 1.40 for very long
   2. The market is uncomfortable holding EUR/USD shorts below 1.38 for very long
   3. Any report from an investment bank plays a bigger role in the market that technicals per se
   4. The USD does not have any sex-appeal for the time being
   5. Currency wars are an invention aimed at destabilizing the FX market
   6. Pay no attention to politicians, big speculators rule this market

Posted via email from MT4

FX retailers' positioning at this hour

Oct 28, 2010 15:20 GMT+0200
READING: %LONG // %SHORT

Despite recent surge, AUD positioning keeps being NET LONG, EUR/USD ratio close to parity, only Cable is tricky at the moment.....

   1. AUD/USD
      51.62% 48.38%
   2. EUR/CHF
      57.97% 42.03%
   3. EUR/GBP
      51.89% 48.11%
   4. EUR/JPY
      54.53% 45.47%
   5. EUR/USD
      46.92% 53.08%
   6. GBP/JPY
      61.68% 38.32%
   7. GBP/USD
      38.37% 61.63%
   8. USD/CAD
      55.83% 44.17%
   9. USD/CHF
      71.69% 28.31%
  10. USD/JPY
      78.41% 21.59%

Posted via email from MT4

What is going on now?

15:15CET

That's a good question, and certainly very little can be added other than QE2 and some other usual stuff is being pumped into the wires to justify the selling of the USD. I mean, yesterday it was a buying day.....today it is a selling day. Period.

The situation is getting a  bit nasty technically speaking, for the technical triggers that we were expecting would cause some concern to the perma-USD bears have not only not achieved that, but some of them are looking uglier every passing hour they don't get confirmed, like the H&S pattern in 4hr Gold chart.

Technically speaking, I have to add, the current levels are nice for USD buying, but again, this irrational market may make no technical sense at all and ignore whatever the signals that keep on coming.

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China can no longer plead poverty

MT4 Offshore : 'China can no longer plead poverty' - Online ...
By Online Trading Platforms
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European FX Midday recap

European FX Midday recap - MT4
European FX Midday recap. 13:32CET. There certainly has been little to comment throughout the morning as most of the post-G20 market reaction took place overnight. Thus, USD consolidated losses vs virtually every single major instrument ...
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FX Retail positioning

11:15CET

This is how things stand in an otherwise lethargic morning, with Euro attractive to be shorted now @ 1.3840.

   1. AUD/USD
      50.55% 49.45%
   2. EUR/CHF
      58.45% 41.55%
   3. EUR/GBP
      55.97% 44.03%
   4. EUR/JPY
      55.32% 44.68%
   5. EUR/USD
      45.87% 54.13%
   6. GBP/JPY
      60.71% 39.29%
   7. GBP/USD
      40.72% 59.28%
   8. USD/CAD
      56.40% 43.60%
   9. USD/CHF
      70.82% 29.18%
  10. USD/JPY
      77.64% 22.36%
READING: %LONG // %SHORT

Posted via email from MT4

Market Call: SELL AUD/USD

10:03CET

I'm selling AUD/USD @ 0.9750, stop 1.0015, target 0.9550 first and second 0.94. May be seen before next month-end.

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Report From Jeremy Grantham That Everyone Is Talking About Today

09:49CET

“The Night Of The Living Fed.”
He compares Fed policy makers to creatures from a zombie attack movie.

Worth a watch.

http://www.cnbc.com/id/39869430

Posted via email from MT4

A Paralyzed Fed Defers Decision On Monetary Policy To Primary Dealers In An Act That Can Only Be Classified As Treason

09:20CET

From ZeroHedge.com

As if there was any doubt before which way the arrow of control, and particularly causality, points in America's financial system, the following stunner just released from Bloomberg confirms it once and for all. According to Rebecca Christie and Craig Torres, the New York Fed has issued a survey to Primary Dealers, which asks for suggestions on the size of QE2 as well as the time over which it would be completed. It also asks firms how often they anticipate the Fed will re-evaluate the program, and to estimate its ultimate size. This is nothing short of a stunning indication of three things:

http://www.zerohedge.com/article/paralyzed-fed-defers-decision-monetary-policy-primary-dealers

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Economic Data for Today

09:15CET

10:30 - EUR - Trichet speaks **
12:00 - GBP - CBI realized trades ***
14:30 - USD - Jobless claims ***
17:30 - CHF - SNB chairman speaks **

Data is valued 1* to 5* depending on what I expect the market reaction will be, 1* lowest.

Posted via email from MT4

At the Open. Time to roll the USD-buying.

09:10CET

Good morning everyone, hope you are fine. Things are heating up in USD's favor. Yesterday, I told you about the upcoming EUR/USD collapse (or sell-off), due to the fact that a very clear DIAMOND PATTERN on dailies broke the lower line @ 1.3820, and prices failed to regain that line twice, meaning that at least 1.35 is next. Also, at the same time, Gold is just about to complete a very nice H&S pattern on the 4hr chart, targeting at least 1,250-60 once 1,310 neckline gives way, so I'd suggest a sell-stop order below the neckline and go with the flow.

Because that is what has to be done. Going with the flow. And going against losers, or at least not to be part of them, and with losers I mean retailers, who are beginning to show net USD short positions, for example in AUD/USD (minim target there is 0.95, so go for it and stop thinking the unit goes to parity again). Another cross that has shifted momentum is EUR/GBP, going net EUR long, which means 0.85-0.84 at least is next now.

Here's how losers (retail traders) are positioning themselves at this hour. As you can see, EUR/USD is about to shift from net short to net long, and this is going to be a massive move for a 1.35-1.33 move. Also interesting to note that, despite today's -so far- decline, the number of USD/JPY longs are beginning to decrease, and oh well, if that one changes as well, we are talking of a big trend shift, of possible some 300-500 pips, in what is going to be a mid-term momentum shift. So my advice to you now, stop selling the USD, don't be that part of the loser-retailers and start looking for long opportunities on the greenback, now that all the monopoly QE2 talk is gone and will have no real effect in the market.

   1. AUD/USD
      52.11% 47.89%
   2. EUR/CHF
      58.88% 41.12%
   3. EUR/GBP
      56.45% 43.55%
   4. EUR/JPY
      53.91% 46.09%
   5. EUR/USD
      47.48% 52.52%
   6. GBP/JPY
      58.82% 41.18%
   7. GBP/USD
      42.19% 57.81%
   8. USD/CAD
      55.32% 44.68%
   9. USD/CHF
      70.33% 29.67%
  10. USD/JPY
      76.86% 23.14%

Oct 28, 2010 09:00 GMT+0200
Reading: %LONG / %SHORT

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At the Close. This is now turning for good.

17:55CET

I had been warning for a while now that price action of the last few weeks was irrational at the very best. Well, techs have finally taken a hold of this silly market, and the USD is poised for a huge comeback, even greater than what most think. Take into account that the level of selling seen in the USD was unmatched for the year, and you can imagine what the magnitude of the comeback could be.

Retail positioning has shifted for good in AUD/USD and EUR/GBP, and this is going to be a decisive factor to propel the USD higher, Gold lower, and EUR down to 1.34-33 in the next few weeks. Positioning in EUR/USD and GBP/USD has not shifted yet, but we're close to it, and it's only a matter of time that we say the same in USD/CHF and USD/JPY, so it's time for a nice USD upmove, at least until Gold sees 1,250-20 on its way down, now that the Head and Shoulder formation is almost completed.

Technically, the EUR/USD has today broken a perfectly shaped diamond picture, which is, along with the H&S, the most bearish pattern around, and a 400-pip target is next, exactly at the time the losers will start piling in with longs.

Before leaving, let me give you the latest retail data, where you'll see the shift in momentum taking place:

   1. AUD/USD
      52.47% 47.53%
   2. EUR/CHF
      59.45% 40.55%
   3. EUR/GBP
      53.51% 46.49%
   4. EUR/JPY
      53.64% 46.36%
   5. EUR/USD
      44.12% 55.88%
   6. GBP/JPY
      58.29% 41.71%
   7. GBP/USD
      40.53% 59.47%
   8. USD/CAD
      57.01% 42.99%
   9. USD/CHF
      72.71% 27.29%
  10. USD/JPY
      77.73% 22.27%

Oct 27, 2010 17:40 GMT+0200
%Long // %Short

Time to enjoy the USD ride, don't fade it, as it's going to be massive. This is my recommendation for today. I'm Tony Juste, thanks for being there, I'll see you again tomorrow.

Posted via email from MT4

Why is the USD gaining momentum now? (worth a laugh)

14:47CET

Much of the renewed USD strength today is as a result of the article in the WSJ suggesting QE will be less aggressive than Goldman and many others on the Street expect. “A few hundred billion” of additional asset purchases is the road the Fed will follow, no doubt after a quiet chat with Mr. Bernanke, the Journal reports.

Have a big laugh at this as the Fed tries to play the expectations game. The same rumors were supposed to cause the USD selling in the last few weeks, hilarious....

http://online.wsj.com/article/SB10001424052702303891804575576533845166848.html?mod=googlenews_wsj

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Trade Against The 90% That Lose Money - PivotFarm

14:33CET

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.

http://www.zerohedge.com/article/trade-against-90-lose-money

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Work at home as a carrer is really not a new workplace idea

Work at Home as a Career is really not a new workplace idea - MT4
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At the Close. Reality 'not' welcome. - MT4
At the Close. Reality 'not' welcome. 18:26CET. It certainly is hard to digest, but after a mostly welcome 'USD-day', when it looked like a bit more sanity ...
www.mt4offshore.com/at-the-close-reality-not-welcome
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European FX Midday recap - AUD/USD shorts to pay off big time

14:20CET

AUD/USD shift in retail positioning (52% long now), same as EUR/GBP, is likely to trigger major stops on the way to 0.95. Further, there is avery clear bearish pennant forming in the 4hr chart, 0.9605 should be seen today.

EUR/USD and GBP/USD have not (yet) shifted positioning, but they are close to doing it, and the EUR/USD inevitable 1.35 target is looming there.

Little to add from here, as Gold hovers around 1,330, but a break of 1,315 looks likely, and that would confirm the H&S pattern, thus creating a USD upmove in straight fashion.

We are just at a throw a stone from a real USD progressive march move, let's not miss it.

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Work at home as a carrer is really not a new workplace idea

Work at Home as a Career is really not a new workplace idea - MT4
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At the Close. Reality 'not' welcome. - MT4
At the Close. Reality 'not' welcome. 18:26CET. It certainly is hard to digest, but after a mostly welcome 'USD-day', when it looked like a bit more sanity ...
www.mt4offshore.com/at-the-close-reality-not-welcome
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The Great Escape.......going offshore!

Going offshore to escape the CFTC - Page 16 - BabyPips.com Forex Forum
Oct 15, 2010 ... Going offshore to escape the CFTC .... I guess it's the reason for which they offer MetaTrader4 on demo accounts, as why otherwise would they be paying the ...
forums.babypips.com/.../36221-going-offshore-escape-cftc-16...

 

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UK data:

September jobless claims +5l, ILO unemployment 7.7%, a bit better than expected - Cable trading steady around 1.5875-80

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MARKET TALK

Talk of…“Large offer” in EUR/USD at 1.4005. Doesn’t negate it going higher necessarily, but will help explain hesitation around 1.4000.

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Retailers' Positions

09:42CET

Source: Oanda

Reading: Long%/Short%
The theory of contrarian sentiment says that whatever the retailers are doing, the opposite happens. Thus, a pair with more longs than shorts will usually keep declining and viceversa.

  1.   AUD/USD
      45.71% 54.29%
   2. EUR/CHF
      58.88% 41.12%
   3. EUR/GBP
      44.39% 55.61%
   4. EUR/JPY
      55.99% 44.01%
   5. EUR/USD
      42.41% 57.59%
   6. GBP/JPY
      62.74% 37.26%
   7. GBP/USD
      45.51% 54.49%
   8. USD/CAD
      62.91% 37.09%
   9. USD/CHF
      74.22% 25.78%
  10. USD/JPY
      79.01% 20.99%

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Gold Vs Treasuries - Which Do You Believe? - SafeHaven.com

09:35CET

Any psychoanalyst looking at the behavior of investors today would see clear strains of schizophrenia in a comparison between the markets for gold and US Treasuries.

Currently, the 10-year Treasury yield is setting new lows on a daily basis. In the financial models all economists were taught at school, this would be an indication of an economy with low inflation expectations and a strong currency. But the dollar has fallen over 12% since June, and the price of gold continues to hit all-time highs. These results are completely antithetical. Bonds are flashing a warning sign of deflation, while gold and the dollar presage hyperinflation.

http://www.safehaven.com/article/18540/gold-vs-treasuries-which-do-you-believe

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Gold Surges After Japan Says It Is Considering New QE And Geithner Guarantees Currency Wars

09:24CET

From ZeroHedge.com

A quick look at gold price action demonstrates that someone somewhere is actively debasing currencies. An even quicker scan of headlines confirms this to be the case: per Reuters "Bank of Japan Governor Masaaki Shirakawa said on Wednesday the central bank will consider expanding a new scheme for buying assets ranging from government bonds to exchange-traded funds when deemed necessary."

http://www.zerohedge.com/article/gold-surges-after-japan-says-it-considering-new-qe-and-geithner-guarantees-currency-wars

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Economic Data for Today

09:21CET

10:30 - GBP - UK employment figures ***

11:00 - EUR - EU industrial production **

14:30 - USD - Import prices **

16:00 - USD - Fed Bernanke speaks ****

Data is rated 1* to 5* depending on expected market reaction, 1* lowest

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At the Open. The post-FOMC action is here.

09:16CET

Good morning everyone, hope you are fine. The USD/CHF cross has made a new record low @ 0.9544, and things just keep getting better and better for the USD at this stage, after the FOMC confirmed what everybody knew, i.e, that they will be putting the printing press at full speed to see whether the can revitalize the economy or not.

Elsewhere, Euro has hit a 1.3975 high while Cable has been testing the mid 1.58 area. What has -relatively- surprised me has been the lack of follow-through by the AUD with respect to yesterday's close, a (maybe) good sign to consider in this erratic and very one-sided market.

Another center of attention is the USD/JPY cross and for obvious reasons, so far no new low after the opening gap on Sunday. Gold, by the way, is trading very near its record highs as it hits $1,356 again.

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At the close. Shouldn't epxect naything good from them...

20:12CET

I've waited till now to close the day just in case the insane Feds would do something interesting, just for a change, but I was not lucky.

Their game of trashing the USDmonopoly continues and the FOMC minutes see the EUR/USD at its best of the day 1.3880, Swissy tanking to 0.9570, etc etc etc.

Here's a re-crap (yes, crap) of what they said in the FOMC minutes: (ForexLivge.com)

FOMC: More monetary easing appropriate before long

    * Many noted appropriate to ease if growth too slow to reduce jobless rate or if inflation continued to fall
    * Many saw saw jobless rate considerably above levels that could be explained by structural factors alone
    * Approaches to easing focus on buying Treasuries, steps to influence inflation expectations
    * Members unsatisfied with progress toward meeting price stability, full employment mandate

http://www.federalreserve.gov/monetarypolicy/fomcminutes20100921.htm

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This may turn to be important - ZeroHedge article

18:25CET

US Long-Only Funds Selling Surges To Level Last Seen In Days Following Lehman Collapse

The latest confirmation that there is nobody left in stocks save for hedge funds, HFTs (who do so at a comped exchange loss via liquidity rebates), and primary dealers, comes courtesy of UBS Client Flow research, which reports that "long only funds increased their net selling to levels last seen in October 2008." Putting a number to this: the week outflows by long-only funds was $783 billion  in the week ended October 1.  This is in addition to observations that retail flows are now a one way street away from stocks, and merely reinforces the threat that the hedge fund playground which is what the stock market is now exclusively, could plunge the moment there is coordinated selling and profit taking. To use more graphic terms, the entire theater is just full of hedge fund millionaires, where everyone owns the same stock (mostly Apple), there is only one open door, and the Fed keeps on pouring gasoline all over the place.

http://www.zerohedge.com/article/us-long-only-funds-selling-surges-level-last-seen-days-following-lehman-collapse

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A nit of noise here and there...and the FOMC everywhere

16:41CET

Just in case you hadn't noticed, today is FOMC-minutes release day (@ 20h CET). The market has already shown some of its guts either way, so it will not be surprising if we see gigantic and dramatic moves after the clows-minutes release. I very much believe we will be marking time till then, although some real nervousness can be felt in the market already, so let's watch the prevailing ranges to see how they fare until the end of the European session.

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I'm starting to hear too much bollocks

14:49CET

A lot of wannabes and bloggers starting to talk about near-term tops in Euro and other majors is just not making it happen, as big sharks basically go and try to deny them. Thus, stops start to go off as Euro hits past 1.3840, Swissy tanks below 0.96 and Cable trades above 1.5835. It's a bad thing when the trash altogether starts to talk the same language....

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It's getting hilarious...

13:19CET

It is widely understood that the puppets at the SNB (Swiss National Bank) are willing to do sod-all when it comes to their own currency, the same onw they tried to defend from appreciating fast when EUR/CHF was trading around 1.50. These guys have lost all credibility, and so has their capacity to influence the market, as EUR/CHF trades below 1.33 again, breaking a support daily line, and USD/CHF, having spiked over 0.9720 earlier in the day, is down to 0.9620 (that is, 100 pips), with no apparent reason and in certainly no time.

Come on guys, time to leave your jobs and go fishing in the Zurich lake! Perhaps you'll be far more noticed there.......

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EU tensions

Germany is against extension of Greek repayment plan for EU/IMF bailout loans – German FinMin spokesman

*Apparently, this issue was discussed in the G7/IMF/WB meeting last weekend.....why did everyone fail to report it?

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BoE official's words

11:40CET

Bank of England’s Miles says:

*very uncertain about where growth and inflation expectations are in the UK
*It’s healthy that MPC members disagree on interest rate policy
*QE remains a potentially powerful tool
*May yet come to use QE
*Not obvious what the next direction of monetary policy is
*Risks both from tightening policy too soon and leaving it loose too long
*Not seeing signs of a “normal upswing” from lending, wage or confidence data
*Were we facing normal recovery, time to remove monetary stimulus would have come
*Supply of credit to businesses and households remains “seriously affected”
*Recent turmoil has raised risk of inflation being appreciably above or below target
*Higher bank capital will make job of monetary policy easier but changes will take time

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UK Data

UK CPI: out @ 3.1% exactly as expected, core CPI 2.7% (+0.1% vs expected)...Cable sells-off very hard on the news to 1.5830, now 1.5845

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Yen-intervention expectations fade

09:48CET

According to an article of opinion appearing on the WSJ blogs.

http://blogs.wsj.com/marketbeat/2010/10/12/yen-intervention-expectations-fade/

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Economic Data for Today

09:39CET

10:30 - GBP - UK CPI data ****
20:00 - USD - FOMC Meeting Minutes ****

Data is valued 1* to 5* depending on expected market impact, 1* lowest

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At the Open. Approaching key levels.

09:24CET

Good morning everyone, hope you are fine. The indications given my some technical moves seen yesterday alerted us of the possibility of crucial (or let's not be dramatic, important) times ahead.

EUR/USD is recovering earlier losses, an indication that bids are starting to mount (as they should, technically) around the 1.3830 area, while offers start to show muscle @ 0.9670 in the Swissy. Also, an important pair these days given the damned prices of Gold (now around $1,345), is the AUD/USD, who happens to find some real support in the 0.8780 area, ahead of the important 0.8750 level.

EUR/CHF is trading in the 1.3370 region and it is acting as a driving force in the market at the moment, so watch it carefully. And so watch Cable, as CPI figures are released in a matter of hours and can be distorting for the market.

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At the Close. Difficult to believe, but...

17:58CET

The Columbus festivity in the US, Canada and the Bank Holiday in the UK have brought extremely low volumes compared to what we had just been seen in the weeks before. This, however, is something which I particularly welcome, because it basically means that technical money, that of retail speculators and mid-cap firms, is dominant in the market, and some of the signals that may be appearing as a result of their interaction should be noticed.

That said, whatever the USD gains on Monday, as a practical rule, it loses on Tuesday, so tomorrow is the key day in all this monopoly mess. It is a key day because it will confirm or deny the moves seen today, will give validity to the moves initiated by the techs, or it will not. And that takes over 24h to be completed, so far from being technically-happy with the current market environment and state of things.

The Euro is piercing the daily steep support line that has kept a madness rise steady these past weeks, and a close below 1.3885 should serve as a confirmation. Likewise, Cable is breaking a support/magnet line @ 1.5895, and a daily close below the level would also confirm it. USD/JPY might be about to trigger a reversal candlestick pattern, but that is wishful thinking on my part for now...as for the Swissy, not much happening there, I thought of it as a possible leading indicator, just to find it lagging and only moving a touch higher, not performing as well as other majors....like the AUD, but oh well, that one is correlated with the damned Gold, and as long as 1340-1350 are not broken on that ridiculously and artificially manipulated instrument, the AUD will be underpinned and will continue to show muscle.

But tomorrow holds perhaps more than one key.......

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Take into account USD/JPY

17:15CET

If the unit can close around/above 82.15 today, consider it a leading indicator that something is really changing in the market. The pair would be confirming a reversal day, marked by a Japanese candlestick pattern called harami (hammer), which would be a bullish pattern as it is taking place at a time when the pair is making new record lows day after day. So let's not take our eyes off the pair, as it might be giving some interesting information by today's close.

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FED: To QE2 or not QE2¿?

15:33CET

Interesting article with quotes a name familiar with the topic @ Morgan Stanley.

http://www.zerohedge.com/article/qe-or-not-qe

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Attention to COPPER futures

Copper hits 27-month highs at this very moment.

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A bit of technicals in the EUR/USD - ForexLive.com

EUR/USD is finding support on an intraday basis at 1.3916 while trendline support has risen to the 1.3889 level. Trailing stops are gathering in the 1.3875 level, traders note, just below the trendline on the daily charts (1.3878). If broken during the course of the day, look for a test of Friday’s 1.3835 lows.

http://www.forexlive.com/138363/all/trendline-support-now-at-1-3889

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How the ECB monetixed the Irish debt - ZeroHedge.com

11:06CET

ECB's games with Irish debt uncovered.

http://www.zerohedge.com/article/how-ecb-directly-and-indirectly-monetized-all-irish-september-treasury-auctions

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Arab Monetary Fund Head: FX Volatility Won?t End Dollar Peg

10:48CET

As reported by Market news International. Little help does this to the monopoly-USD, as losses start to mount again, EUR/USD @ 1.3945, Cable 1.5950, after the opening gaps have been filled.

http://www.forexlive.com/138302/all/arab-monetary-fund-head-fx-volatility-wont-end-dollar-peg

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The US to sep up pressure on China - WSJ

09:59CET

The never-ending story (for now, of course, later we'll have another party somewhere else), has another chapter to add to its books........

http://online.wsj.com/article/SB10001424052748704127904575543801865057796.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

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Weekly Analysis Report (prepared for Investors-Europe.com)

09:57CET

Below is the text f the weekly analysis prepared for Investors-Europe.com, updated each monday morning European time.

FX ANALYSIS
Little time to think

Last week was one of those clear examples of what ‘stop hunting’ or ‘price aberration’ expressions do mean. The Euro, some will argue that in a technically justifiable note, rose to 1.4025 high vs. the US Dollar in an astonishing one-sided trading week, which saw the single currency appreciate by over 400 pips, that is, almost 100 per day. The so-much talk of a new round of quantitative easing by the Federal Reserve (QE2), is just putting more pressure to an already damaged US Dollar, only that this time not only the Euro zone, but many other economies, are complaining about that. The possibility of what some call a ‘currency war’ is not that far-fetched if we look at precedents in history. Technically speaking, however, and as the reader will easily identify by looking at the chart, this unit is technically in aberration mode, which means that at some point its moves can be wild and extreme, so in these cases is better for the dust to settle before turning aggressive in joining technical signals when they appear.

 ---------------------------------------------------

Cable continues to show a rather better technical picture than that of the Euro, although its marching upwards has not been halted either. In the chart below one can see the technical difficulties which the unit is facing en route to the recent highs, and for now it seems that those technical instruments are doing a relatively good job. Cable’s upward momentum is safe for the time being, and would only be threatened by first a break of the 1.5600 handle and next and more decisively, by the break of the (now key) 1.5400 handle. Buyers are lining up around 1.5650, so longs should be considered if/when approaching that area.

-----------------------------------------------------------

There is certainly very little that one can say about the behavior of the JPY crosses, and in particular of the USD/JPY. The USD is tanking vs. the rest of the currencies, granted. But that does not justify seeing the pair @ 81.30 (very near its all-time low @ 79.75), when just 2 weeks ago, the BoJ intervened in the market, spending over 25Bln, in order to try to prevent its currency from rising further. And that was @ 83…so in fact, what we have now the situation where the big speculators make fun of the BoJ and its interventionist tendencies, which is no good for the market image, and certainly creates the doubt of whether this one-sided market against the USD is not fabricated at all.

 -----------------------------------------------------------

WORLD MARKETS ANALYSIS
Equities hit new short-term highs

The Dow Jones Industrial Average (DJIA), with no real technical barriers to put pressure on the upside, has continued to march higher, trading now above 11,000, and eyeing very closely the April highs around 11,200, which should put a bit of a fight, and perhaps even create an easier technical picture to analyze with. As said, technically speaking there is little to add for the time being, as there are no relevant resistance or support lines to discuss, and we can only talk of static levels. That said, 11,200 is the next main target and where all eyes are set.

 --------------------------------------------------------
Crude Oil down to magnet line as expected

Crude Oil (WTI) made a good rally on Friday, but if we pay a more close attention to what the action was before then, we’ll see that the magnet line we said it would be important in the near future as it would not allow prices to climb fast and far from it, made its work and definitely halted the advance of prices, and prices could this week move below it.

----------------------------------------------------------------------

Gold (spot) hits record highs day after day, now above $1,360

Over $50 gained in just week in Gold. And it keeps on happening, day after day. It is somewhat odd having to analyze something that doesn’t want to be analyzed, that just wants to keep its moves one-sided, and not respecting techs. Therefore, it is to assume that techs will have a bit of a better importance once the presented uptrend line gives way…if it eventually does.

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Soros and the dangers of current FX environment

09:52CET

George Soros has warned that a global “currency war” pitting China versus the rest of the world could lead to the collapse of the world economy.
The billionaire currency investor criticised China for deliberately keeping the yuan - its currency - low in order to keep exports cheap, which is hurting US competitors. Mr Soros, the hedge fund manager best known as the man who broke the Bank of England” after he made a billion betting against the value of Sterling on Black Wednesday in 1992, said the China had created a “lopsided currency” system.
He criticised China for deliberately keeping the yuan - its currency - low in order to keep exports cheap, which is hurting US competitors.
He said China could also influence the value of other world currencies because they have a “chronic trade surplus”, which means the Chinese have a lot of foreign currencies. “They control not only their own currency but actually the entire global currency system,” he said.

Writing in the Financial Times, Mr Soros added: “Whether it realizes it or not, China has emerged as a leader of the world. If it fails to live up to the responsibilities of leadership, the global currency system is liable to break down and take the global economy with it.”

http://www.telegraph.co.uk/finance/currency/8052729/George-Soros-warns-China-of-global-currency-war.html

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Are U.S. Investors Driving the Gold Price? - Julian D. W. Phillips

09:38CET

That could turn out perfectly true, as we know how 'herdish' these yankees are.

http://www.safehaven.com/author/23/julian-d-w-phillips

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South Korea's Lee warns of big trouble if FX accord fails - Reuters.com

09:36CET

The reaction of one of the most endangered economies by the current USD-monopoly devaluing.

http://www.reuters.com/article/idUSTRE69A0RN20101011

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European Bourses Update 09:34CET

European stocks open mixed for the day, Spain's IBEX down 45 points but the rest of places are up between 0.1 and 0.3%

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Economic Data for Today

09:31CET

All day - USD&CAD - Columbus Day - Bank Holiday in US & Canada
19:30 - EUR - ECB Trichet speaks ***
01:01 - GBP - BRC Retail Sales data and RICS House prices balance **

News are valued 1* to 5* depending on expected market impact, 1* lowest.

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At the Open. So what's up next?

Good morning everyone, hope you are fine. The start of the week was a bit 'creepy' to say the least for the BoJ fans, who saw the USD/JPY collapse in early trading to 81.30, modestly regaining ground to current 82.10 later on. The USD has not been helped at all by the useless and every time more ridiculous G7/IMF meetings, which used the overall rhetoric to refer to the current FX war situation and basically say that 'fast moves in FX were not desirable'. Having said that, this and next week are (perhaps) the two crucial weeks for the USD till the end of this 2010. Why? Don't ask me that, it's just a gut feeling. The too much talk of the QE2 by the Fed is just making everyone be one-sided at the moment, and when that happens, it certainly is not easy to try and trade the markets in a technical way, it's better to wait for the dust to settle before going in full again.

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At the Close. Maybe...or maybe not.

17:59CET

There's been really nothing to comment up to now (and this just to be an excuse to write some closing words for the day and week), as the initial hysteria after the US employment figures has been followed by market apathy and as a result nothing really interesting to talk about.

The market frenzy seen yesterday in the afternoon indicated that something was going on behind the scenes...or maybe not. As it has been pointed out in many sites/blogs, there was the thought in the market that today's NFP could restore some sanity to the picture of some of the FX majors' charts, but they were just wishing too much. Indeed, the Euro is back to where it was yesterday, so in a purely closing-to-closing basis, we've wasted two trading days, the huge market noise in the middle notwithstanding.

Are the technical FX charts worth to read at this point? Are there any techies willing to make the charts any credible? I honestly don't know...now. I'm not protesting against them (why should I anyway?), or trying to blame someone ('they') in the process, but it does look fishy when you can't look at the charts the way you would not so long ago. I don't care if it's QE2, XE, XP, Vista o Acrobat what is driving this major force from behind that is causing the current market disruption, leading to insanity. I also don't care if the monopoly Dollar goes up or down, but I do care about the charts. AND THEY ARE NOT BEING RESPECTED AT THIS POINT. That also, as history has tried to warn us in the past, leads to similar processes in the opposite direction, if/when they take place.

Speaking of insanity, and despite some Cable News / Showmen jokes, Gold is in insane territory and there's nothing one can do about that. Chart-wise, the situation is in total aberration, but again, gold-diggers and fear-mongers like to call for Gold as the next Holy grail and add the fact that inflation-adjusted its price should be around $2,000, so it's time to by. Yeah, right... That is also helping the AUD become insane, not that the currency has been technically very sane in its history, but come on...now it's beginning to look like a joke. I feel next 2 weeks will be of even more market volatility so fasten your seat-belts and get ready to roll!

As the market seems to have already gone on holiday (Columbus day in the USA is due on Monday, so beware of UK wolves to play their own game alone), here is a reading that may help you get through the weekend a bit better.

http://www.zerohedge.com/article/fx-war-update-rio-offensive-valiantly-defends-feds-beach-head

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IMF economist chief:

No need for more financial stimulus in the USA

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Euro near key support line

15:06CET
Watch the chart in the link below.

http://www.forexlive.com/138073/all/juncker-sends-eur-toward-uptrend-support

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The Europeans speak their mouth at the IMF

14:58CET

As reported by ForexLive's.com jamie Coleman:

Euro too strong today: Juncker
Eurogroup not happy with euro reaching 1.40.
We have to make sure weaker currencies catch up with euro, particularly CNY.
Dollar not in line with economic fundamentals.

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Interesting piece on SafeHaven.com

14:43CET

Axel Merk's ECB vs Fed view. The guy is a good fund manager, so worth a read.

http://www.safehaven.com/article/18491/ecb-triumphant-over-fed

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Yeah, it was too good earlier on...

14:39CET

The techies who believed that a more rational market was due have just been left behind again as NFP data brings all the funnymentals in and crasehs the USD in no-time. EUR/USD trading @ 1.3980 is not particularly fascinating, as it shows a 100 pip gain in 5 minutes, so more or elss we're back where we were yesterday. Funny? Not at all...

Swissy down to 0.9620, USD/JPY testing 82 mark, a break should send a final (if it hasn't already) signal to the idiots at the BoJ that the time is now to 'PUT UP' the eggs on the table and stop the game.

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USD selloff after data

14:33CET

Initial reaction hostile to the USD as data disappoints. USD losing between 50 and 80 pips against the majors at this point.

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US Employment Data

USD DATA: Non-farm payrolls -95,000, unemployment rate 9.6% unchanged

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More from the IMF/G7 meeting

Germany Govt: Dollar May Be Undervalued Due To Fed Mon Policy
(Market News International)

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Fed's Bullard:

"Fed could wait until December meeting if it felt it needed to see more data to make decision on easing"

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Looks like timing is not right, folks!

13:04CET

FxPro.com (as FXstreet.com's CEO reports) was about to launch an IPO in the London Stock Exchange, to expand their capacity in the markets (which is currently visible, as they are engaging in numerous sponsorship deals). Well, that 'was' the idea, but it has been halted to further notice.

http://blogs.fxstreet.com/francesc/2010/10/07/fxpro-lse-ipo-postponed-due-market-conditions/

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CAD data:

CAD data: payrolls -6.6K vs 10.7 expected, rate 8% vs 8.1% expected - USD/CAD spikes above 1.0215 after the news

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Germany Govt spokesman:

 Germany will participate vehemently in G20 FX discussions

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Iceland banks may forgive $2 billion after protests

12:36CET

Absolute nonsense...so what will it happen if I go to the bank and ask for the condoning of my credit card and other debts I have there? Well,more likely to s*** the f*** up and keep paying...right?

Well, I'd hope this case brings a rule in the future whereby banks condone your debts if you can gather say 4-5K people in the streets throwing eggs at politicians...

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First comments from today's IMF/G7 extra-meeting

11:42CET

We are beginning to get the first reactions off today's extra-meeting by the G7/IMF finance ministers. Coincidence or not, the first to open their mouths are the Japanese. Here is a brief recap on vice Finance Minister Igarashi:

(1) G7 must confirm its will to cooperate on currencies
(2) Wants U.S. to show certain tolerance on currency issues
(3) No change in Japan stance to take firm steps against rapid fx moves
(4) Solo Japan fx intervention has limited impact on fx market
(5) Excessive controls on global capital flows not desireable
(6) Competitive currency devaluations no good for world economy

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More on the recurrent topic these days

11:40CET

You can't get enough of trashing the monopoly Dollar out these days. SafeHaven.com contributors think the same way, too.

http://www.safehaven.com/article/18490/of-mid-term-elections-and-a-sinking-us-dollar

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Watch out Crude Oil and take some short of action

11:24CET

Yesterday's reversal candle in the Crude Oil daily chart is worth your attention if you're trading this unit. Yesterday's close @ $81.50 after hitting over $84 during the session has triggered a clear SELL signal, stop @ $84.75, targets (1) $80.25 and (2) $79.

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This might turn very interesting

09:53CET

From ZeroHedge.com

Some more observations on what will be the most contested capital markets topic through November 3. Goldman's Sven Jari Stehn has attempted to do quantify the response to the question that most equity and bond investors are banging their heads over: namely, how much of QE2 is already priced in. Goldman's findings: "a purchase program of about $1tr may now be reflected in 10-year Treasury yields, the three-month Libor rate and the dollar." Of course, there is a qualification: "This finding, however, is sensitive to when we think the market started pricing in QE2; equity price gains since Bernanke’s Jackson Hole speech have been more pronounced." Then again, there are those who will say that using QE1 as a framework for any comparative efforts is useless, as QE1 had little to no effect. While that may be true for the general economy (read Main Street), it certainly helped liquidity conditions on Wall Street: "our estimates suggest that “QE1” eased financial conditions significantly through lower long-term yields, higher equity prices and a weaker dollar." In other words Wall Street and Corporate America 1, Everyone else 0. But we knew that long ago. So here are Stehn's full findings, which may disappoint all those who are hoping for the absence of a sell the news event at 2:15 pm on November 3 (and will certainly disappoint all those who are hoping there will be no broad flash crash if there is no news): in a nutshell double the upcoming $1TR QE2 is already priced in in bonds, and half of it: in equities. Using the law of averages and Gaussian distribution, which backs every flawed economic theory, means QE2 is now fully discounted.

http://www.zerohedge.com/article/goldman-finds-qe2-now-mostly-priced

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Economic Data for Today

09:34CET

10:30 - GBP UK PPI Data ***

13:00 - CAD Canada Unemployment figures ****

14:30 - USD US Employment report *****

ALL DAY - IMF MEETING

Economic events are valued 1* to 5* depending on the projected market impact, 1* lowest.

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At the Open. Game is on.

09:28CET

Good morning everyone, hope you are fine. Today is one of those days where things can just change in a matter of seconds due to the big market impact (and therefore big distortion) of economic data.

Yes, today's NFP day. Hooray! You know what that means, too. A rather anemic market until the data release, and then....boom! In that sense, we start the day with GBP rather soft, but we have the great single currency of Europe (EUR), definitely not following suit and staying around yesterday's market opening levels. It's funny, though, that after all the noise we saw in the market yesterday, we are at yesterday's opening values, and leaving it all to a piece of fabricated data that everyone knows is cooked.

So we better make some room for the eventual market shaking, but in the meantime use this spare time to enjoy the beautiful morning.

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At the Close. Woooops!

18:08CET

Well, it did not look good for any USD holding throughout the day, but the later price action, and more specifically after the break through the 1.4025 barrier on the pretext of the ECB press conference, has put things into 'perhaps and only perhaps' a new perspective, that is far from being in any case confirmed.

I wouldn't mind the mouthpieces of the bull arena to have a bit of a harder time calling what's next to happen (they've really had an easy job these past days), so to show what they are really made of.

I think the interesting unit to watch closely, even more than EUR/USD and its ridiculous tech or funnymental games, is Gold. The buying climax seen these days, although paranoiac and crazy, may be a good indicator of a mid-term market prospect. Will that be true? Don't know, but there is a lot of interest in that unit, which by the way is highly correlated with AUD, and I think it to be a leader rather than a lagger in the weeks/months ahead.

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Currency Wars - Article on SafeHaven.com

16:37CET

Interesting article by Kieran Osborne on the 'so-fashion' currency wars.

http://www.safehaven.com/article/18478/currency-wars-the-phantom-menace

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World Bank: CNY appreciation need but no silver bullet

16:11CET
By ForexLive.com - Jamie Coleman

So says chief Zoellick. He’s right about that.

The US trade gap widened despite 20% CNY appreciation between 2005 and 2008.

CNY appreciation of that magnitude in a weaker growth environment would probably be more effective, however. That’s what scares China to death and is why they won’t budge.

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Looks like someone opened the door...

15:51CET

Market taking things the other way around as USD makes a strong one-way ticket comeback. Not knowing exactly the excuse the mainstream folks will use, some start to rumor that it is because middle-east guys are squaring positions (there's always an excuse, is it not?).

Gold retracing to $1,340/oz is also very good news, as it is perhaps marking something else than just a short-term halt to a very much aberration and distressed technical market.

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Take this:

Upwards of EUR 1 bln absorbed at 1.4000, like it was just a penny

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Trichet expresses FX concern - ForexLive.com

14:54CET

"Trichet raised his level of concern on FX rates, saying volatility has adverse effects on economic and financial stability. Notes US strong dollar policy." - Jamie Coleman

Very large offers are seen at 1.4000, 600 mln at least. They have just gone off as we trade @ 1.4011...perhaps Trichet gave the green light to push higher and sell the USD down against everything...

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And would you buy anything from these clowns?

14:51CET

And what about these damned clowns at the BoJ? 3 weeks ago screamed out loud they would not allow the JPY to rise further vs the USD, put up 25Bln in cash to show that......and now taht prices are below their intervention level, they say they will not join a 'currency devaluation' rise...Are they sane?

http://www.bloomberg.com/news/2010-10-07/japan-won-t-join-a-currency-devaluation-race-vice-finance-minister-says.html

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Can you believe Geither's words?

Geithner Calls for Currency Cooperation Amid Rush to Weaken, as reported by Bloomberg.com. Can you believe a single word of this man?

http://www.bloomberg.com/news/2010-10-06/geithner-sees-a-damaging-dynamic-in-policies-to-undervalue-currencies.html

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US Data 14:30CET

US Jobless Claims 445K , better than the 454K expected, USD hardly changed (positively of course) on the back of the news....

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ECB Rate Decision

ECB keeps interest rates @ 1%, but you know that the real news is the press conference starting in 45 minutes from  now.

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GBP/USD

The unit is testing a very key resistance line (dynamic) in the daily chart @ 1.6015 (area).

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BoE Data

0.5% interest rate and GBP200Bln Asset Purchase Facility, all in line with expectations, Cable surges on the news to 1.5980

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U.S. 2 year t-note yield falls to record low of 0.375%

And it is that really...Everywhere you look records being broken.

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Is hyperinflation here? - Article

12:44CET

Interesting piece in the Washington Post (not a favorite newspaper, but sometimes coming out with some common sense), that shows what I believe everyone else already knows, i.e, that the flooding of money is getting to the companies, but not yet to the street, causing the former to be able to do something with it...and what do they do? Buy stock...and what does this mean? Equities up...Manipulation? No way!.

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/06/AR2010100606772.html?hpid=topnews

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Japan EconMin Kaieda

"Watching forex markets closely" ... Could they do more than just talk?

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Gold attracts top-less models - Article of Opinion

11:24CET

Gold's rally is making the headlines in every single business TV around the world (current high @ $1,365/oz), but this week we've also learned that ex-hairdresser, now top-less models, are also in this new gold rush. Everyone should end up taking their own conclusions.

Courtesy of SafeHaven.

http://www.safehaven.com/article/18475/chasing-tail-risk-with-gold-ding-dong

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