Euro lost some momentum

After an impressive movement in the last few days, euro euro gave some of their positions. Several factors played a role, including confirmation from Moody's, that it lowers the credit rating of Spain by one point from Aaa to Aa1, and announcements from the Bank of Ireland, that banks Anglo Irish and Allied Irish might need additional capital is 14.4 billion euros.



Another powerful moment was the sale of euros for pounds, with the fall cross EUR / GBP to 0.8580 from 0.8650 yesterday. Pound slightly helped recent data from Nationwide, which showed that house prices rose slightly this month. As a result, the cable touched 1.5850 in early trading in London, while the euro went below 1.36

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Weak stocks in Asia and the drop in the number of approved loans to put pressure on Aussie

Weak Asian stocks and an unexpected decline in mortgage approvals in Australia last month crushed last night at the Australian. After reaching 0.9730 yesterday, the new two-year high, the Australian came back to 0.9675 this morning, as some longs were removed from the market after good results in the past few sessions. The weak number of new mortgages has caused re-evaluation of the likelihood of higher interest rates RBA next week, but now the chances are much higher. It is also very close eye on stocks, as October begins for them is traditionally difficult. We can see the closing of long positions in the coming days, when stocks start to lose some of its luster.

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China reined States after the adoption of the Bill of Forex House of Representatives

The House of Representatives of the night Amerikaskaya adopted a bill that allows U.S. companies to impose additional obligations on imports from those countries where governments actively weaken the currency (ie, China). The voting was 348 to 79, so that the support was wide in both parties.




The Senate will debate its version of the bill after the midterm elections in November. China powerfully reacted immediately, saying that the bill violates the recommendations of the WTO, and that the level of the yuan will not be able to assist in overcoming the U.S. trade deficit, and then fixed the yuan at a weaker level than yesterday. USD / CNY fell to 6.6850 at night, but China has set the official exchange rate at 6.7011 to the provocative.

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Ossie was closer to parity

Invincible Aussie continued his triumphal march yesterday, reaching 0.97 in early trading in London, a new high for 2,5 years. In July 2008, the AUD has established a maximum of 0.9850 - for the bulls, which are many these days, they will want to see this level is taken as soon as possible. On the background of the continuing decline in the dollar, in the end it becomes a matter of time. Growing speculation that the RBA may arrange a new round of rate hikes at a meeting next week. Positive sentiment for the currency was further supported by a further increase in the asset market at night. This was an excellent quarter for the Aussie, who rose against the dollar by more than 15%.

Irish and Portuguese debt again stood out. Not left in peace the Irish and Portuguese bonds yesterday. Spreads on them again rose sharply. Spread on 10-year securities of Ireland to the corresponding German Bunds widened to 20 points to a new record of 435 points, while spreads in the Portuguese papers increased by 15 points to 415 § Concerns over Ireland remains because of continuing concerns over the cost of Support Anglo Irish, while the S & P analyst speculated yesterday that the cost could rise to 35 billion euros.

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USD / JPY fell below 84

In terms of loss of confidence in the dollar, it is not surprising to see USD / JPY a failed below 84 this morning. At least in Asian trading amounted to 83.66, near a 15-year low of 82.88, set in the middle of the month. It could be worse for the yen against the backdrop of increased concern in both small as well as large companies, the prospects of a strong yen, which highlighted the report Tankan. Important for all the automotive sector has experienced extremely sharp drop in expectations, highlighting the effect of fracture, which does business sentiment in the sector a strong currency. Weak Tankan increased demand for additional fiscal stimulus, which the Prime Minister Kang announce. On top of the Bank of Japan may consider additional monetary easing at the meeting next week.

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Hawks comments from a former adviser to the NSC

Yu Yongding, a respected former adviser to the People's Bank of China, made yesterday a very harsh statements against the United States. He said that the dollar was "one step closer" to the crisis, and that devaluation was inevitable in light of such huge debts.
Chinese manufacturers have become stronger. Chinese index PMI, calculated by HSBC and Markit rose to 52.9 this month, up to a maximum of five months. Higher values are achieved the promise of the government this month to expedite the completion of construction projects, including construction of the state as part of stimulus plan.

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Britain's retail sector remains vibrant

Study of the British CBI retail sector suggests that the mood on the high-street definitely afloat, giving balance to increase to 49, its highest level in six years. Another interest was the final GDP data for the second quarter, which showed the fall in the saving rate to 3.2% after peaking at 7.7% in the 3 rd quarter of last year. Interesting division of the case now with the Bank of England, as some want to shift to investment and net exports, while others (recent comments Bean) want to see more spending by consumers. Fall in the level of savings - this is a positive signal for consumption in the short term and less positively to rectify the balance of households.

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