Currency Updates:
U.S. Dollar Trading (USD) retrieved some of its losses from the previous week in what was an uninspiring night with US and Canada Bond markets closed due to Columbus Day holidays. In other key developments, China has raised reserve requirements by 50 bpt for six large commercial banks overnight in an attempt to subdue the pace of the economy. US share markets were slightly changed with the Dow Jones higher by 3.4 points, S& P 500 up 0.04% and the NASDAQ up by 0.04%. Looking ahead, much of Tuesday&rsquo s focus will be directed at the FOMC minutes of the September 21 meeting, as the market looks to gage on how soon a second installment of QE could materialize. Followed by last Friday&rsquo s poor payrolls numbers, it is assumed that a lifeless Labor force would prompt the Federal Reserve with further easing in upcoming meetings.
The Euro (EUR) lost ground against the greenback on Monday&rsquo s trade. In domestic news, IMF&rsquo s Kahn suggested the IMF would allow for more time for Greece to repay loans, prompting an optimistic rally in Euro stocks. The Euro traded with a low of 1.3867 a high of 1.4011 before closing the day 1.3875. Looking ahead, ECB president Trichet is scheduled to speak at the Economic Club in New York.
The Japanese Yen (JPY) was little changed due to market holidays, with no developments from Japan during Monday&rsquo s trade. The USDJPY continues to trade below BoJ intervention levels seen mid-September. The USDJPY traded with a low of 81.40 and a high of 82.19 before closing the day at 82.09
The Sterling (GBP) eased further in Asian trade on Tuesday, as RICS house price index fell to -36 from -32, to record it lowest reading since May 2009 whilst BRC retail Sales also fell to 0.5% from previous 1.0%, justifying the BoE&rsquo s disregard to near term inflationary pressures. The GBP traded with a low of 1.5870 and high 1.5962 before closing the day at 1.5871. CPI figures for the month of September are due for release with forecast at 05%/3.1% (mm/yy)
The Australian Dollar (AUD) eased on news of China raising reserve requirement for several commercial banks, although selling pressure was limited when details of the reserve requirements were only in place for a 2 month period were released. The AUD traded with a low of 0.9822 and a high of 0.9906 before closing the day at 0.9838.
Oil & Gold (XAU) XAU rose by US$9.1 an ounce to US$1354.40, whilst Oil eased by US$0.45 to trade at US$82.21 a barrel.
