Overnight News Bullets
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.
Markets
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.
O/N Data Heat map:
Calendar
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, |
What's going on?
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
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. |