A Slow Start To The Week Highlighted Once Again By Credit Concerns

Credit worries continued with Citigroup stating it will report as much as $11B in additional writedowns

UK Official Reserves ??�Changees (Oct), out at $631M vs. $1069M prior.
E-Z Sentix Investor Confidence (Nov), out at 14.0 vs. 12.4 exp. 15.3 prior.
UK Industrial Production MoM/YoY (Sep), out at -0.4%/-0.2% vs. 0.2%/0.4% exp. 0.1%/0.7% prior.
UK Manufacturing Production MoM/YoY (Sep), out at -0.6%/-0.1% vs. 0.1%/0.7% exp. 0.4%/0.6% prior.
US ISM Non-Manufacturing (Oct), out at 55.8 vs. 54.0 exp. 54.8 prior.
UK NIESR GDP Estimate (Oct), out at 0.7% vs. 0.7% prior.
NZ ANZ Commodity price (Oct), out at 1.8% vs. 0.4% prior.
JN Leading Economic Index (Sep P), out at 0.0% vs. 0.0% exp. 27.3% prior.
JN Coincident Index (Sep P), out at 66.7% vs. 66.7% exp. 85.0% prior.

FX: Dollar weakness continued as credit problems persist. EURUSD above 1.45 on Tuesday??�s trading and USDCAD pushing for 0.9300.
Fixed Income: European bonds and Treasury notes little changed. JGBs continue to gain after 40-yr auction draws investor demand.
Stocks: Most Asian stock rebound, with Nikkei marginally lower. US equities closed lower on losses suffered by financials.
Commodities: Gold continues to surge, spot price around $813 an ounce. Crude resumes rising path, with December WTI $95 a barrel.

Today's Highlights:


Time (GMT)	Region	Release	Consensus
10:00	E-Z	Euro-Zone PPI MoM/YoY (Sep)	0.3%/2.6%
10:00	E-Z	Euro-Zone Retail Sales MoM/YoY (Sep)	0.6%/2.2%
11:00	GE	Factory Order MoM/YoY (Sep)	-0.3%/6.2%
13:30	CA	Building Permits MoM (Sep)	1.80%
15:00	CA	Ivey Purchasing Managers Index (Oct)	55
22:00	US	ABC Consumer Confidence (Nov 4)	-14
22:30	AU	RBA Cash Target (Nov)	6.75%
23:50	JN	Official Reserve Assets (Oct)	$945.6B (Prior)

This and Next Week??�s Highlights:


Date	Region	Release
07-Nov	UK	Nationwide Consumer Confidence, BRC October Shop Price Index
07-Nov	AU	Home Loans, Investment Lending, House Price Index, Foreign Reserves
07-Nov	SW	Budget Balance
07-Nov	NO	Industrial Production, Industrial Production Manufacturing
07-Nov	GE	Industrial Production
07-Nov	US	MBA Mortgage Applications, Nonfarm Productivity, Unit Labor Costs, Wholesale Inventories, DOE US Crude Oil Invenstories, Consumer Credit
07-Nov	NZ	Unemployment Rate, Employment Change, AiG Performance of Construction Index
07-Nov	JN	Machine Orders, Net Bonds/Stocks Investment, Money Supply, Broad Liquidity, Bank Lending
08-Nov	AU	Employment Change, Unemployment Rate, Participation Rate
08-Nov	JN	Machine Tool Orders
08-Nov	SZ	Unemployment Rate
08-Nov	GE	Trade Balance, Current Account
08-Nov	SW	Industrial Production, Industrial Orders, Activity Index Level
08-Nov	UK	BOE Rate Announcement, Leading Indicator Index, Coincident Indicator Index
08-Nov	E-Z	ECB Rate Announcement, Trichet Speaks at Conference
08-Nov	CA	Housing Starts, New Housing Price Index
08-Nov	US	Initial Jobless Claims, Continuing Claims, EIA Natural Gas Storage Change,

Credit worries continued with Citigroup stating it will report as much as $11B in additional writedowns. Morgan Stanley, Goldman Sachs and Bank of America were also in the list of losing financials.
As dollar weakness continued on the back of credit problems and oil prices resumed its rising path, gold extended earlier gains. Precious metal is now trading around $811 and has already rallied about 30% YTD.
Most Asian stocks rebounded after two days of continued losses on news of Google joining forces with regional mobile phone producers.
Crude oil resumed its rise towards $100 level on speculation that US oil stocks would fall further due to disruptions to short-haul Mexican shipments. December WTI contract touched a high of $96.12 on Monday??�s trading.

FX Trading Strategies


Pair	Supp.	Resis.	Comments
GBPCHF	2.396	2.41	Break-out play in GBPCHF. We have a signal to long at 2.40195 and short at 2.39645. Hence we place an order to buy at 2.4020 bid, stop offer at 2.3999, targeting 2.41. To the downside, we have placed an order to sell at 2.3968 offer, stop bid at 2.3990, targeting 2.3915 and lower.