NEWS / Foreign Exchange

Treasury Market Preview

• *** ECONOMIC SCHEDULE ***
• US MBA Mortgage Applications: No Estimates || 6.8% prior [7:00 et]
• BE Oct Business Confidence Level: 1.2e || 1.5 prior [9:00 et]
• US Sep Existing Home Sales: 5.25Me || 5.50M prior [10:00 et]
• US Fed??™s Krozner to speak [10:30 et]
• EU ECB??™s Trichet and ECB??™s Garganas to speak [12:00 et]
• US Treasury??™s Paulson to speak [12:30 et]
• US Treasury to hold 2-year note auction [W 13:00 et]
• *** EUROPEAN NEWS OVERNIGHT ***
• IT Oct Business Confidence: 92.9 v 92.1e
• IT Sep Trade Balance Non-EU: -?‚¬2.11B v -?‚¬1.69Be || Prior revised from -?‚¬961M to -?‚¬981M
• EU Aug Current Account: ?‚¬3.8B v ?‚¬2.0Be || Prior revised from ?‚¬1.7B to ?‚¬3.8B
• EU Oct Advanced PMI Manufacturing: 51.5 v 52.9e
• EU Oct Advanced PMI Services: 55.6 v 54.5e
• EU Oct Advanced PMI Composite: 54.5 v 54.6e
• ECB Trichet: A credible commitment to maintaining price stability is essential in a globalized world
• ECB Trichet: Monetary policy has to ensure that inflation expectations are well anchored
• ECB Gonzalez-Paramo: The market turmoil does not have to mean weaker growth nor weaker inflation
• ECB Gonzalez-Paramo: Uncertainty means that the ECB needs to be cautious
• ECB Gonzalez-Paramo: Sees upside risks to price stability
• ECB Gonzales-Paramo: Inflation above 2.0% is no reason to change the ECB??™s assessment
• *** ASIAN NEWS OVERNIGHT ***
• JP Sep Merchandise Trade Balance: ??1.64T v ??1.48Te || Prior revised from ??743.2B to ??735.3B
• AU Q3 Consumer Prices: Q/Q 0.7% v 0.9%e || 1.9% v 2.1%e
• AU Q3 RBA Trimmed Mean: Q/Q 0.9% v 0.8%e || Y/Y 2.9% v 2.8%e
• AU Q3 RBA Weighted Median: Q/Q 1.0% v 0.8e || Y/Y 3.1% v 2.8%e || Prior Y/Y revised from 2.8% to 2.9%
• CH NDRC Calls for a 15%-20% one-off Yuan revaluation
• CH Central Banker: Forecasts 2007 CPI of 4.5%
• CH Central Banker: No change in the Yuan exchange rate policy is likely
• CH Central Banker: No faster Yuan appreciation seen after congress; Flexibility to rise over time
• CH Central Banker: China to wait and see on further interest rate hikes
• JP Finance Minister: Japan aims to achieve economic growth and fiscal reform
• JP BOJ Executive Director: CPI seen rising in the long-term
• JP BOJ Executive Director: Consumer spending is on a gradual recovery trend
• AU Treasury Secretary: There may be grounds for some banks to raise business lending rates
• AU Treasury Secretary: Food and housing were major contributors to CPI figures