GBP

Quiet in the UK yesterday. Only figures released were house
price figures which showed a decline of 2.4 % as opposed to a gain of 2.8% the
previous month; the pound declined against most of its peers as a result.

EUR

GBP

Quiet in the UK yesterday. Only figures released were house
price figures which showed a decline of 2.4 % as opposed to a gain of 2.8% the
previous month; the pound declined against most of its peers as a result.

EUR

Main figures out yesterday from the Eurozone were trade balance
figures which came in at €13.1bn which is almost double the previous month and
well above the expected €10bn. The EU is obviously a large exporter of goods
and services, the number of goods and services exported has increased
substantially.

This saw GBP/EUR drop off yesterday reinforces our thoughts
yesterday that we could see a bit of euro strength this week.

USD

Figures out from US included Net Long Term Flows, which
shows of the in and out flows of financial resources in the US. This has
improved from –US$9.8bn in the previous month to a gain of US$25.5bn this
month. This is particularly important as it shows the US could be cutting its trade
deficit.

Last night Federal Reserve member William Dudley reiterated
the Fed’s stance that economic growth isn’t sufficient yet to start tapering
stimulus. However, he believes that growth will pick up in 2014 and 2015. As
growth improves then conditions in the job market should also improve.

AUD

The AUD gained yesterday against most of its major peers
yesterday. This is on the back of Chinese Economic reforms which have improved
the outlook for Australian exports to China.

Also overnight in the Reserve Bank of Australia’s minutes
from their latest policy meeting, the central bank confirmed that recent
interest rate cuts were working and at this time they feel prudent to hold the
interest rate at 2.5% but reaffirmed that they would be in a position to cut
the rate should they feel it was required.

The Australian dollar strengthened by an additional 0.6%
against the pound as a result.

Today

We have economic sentiment survey data out from Germany and
the Eurozone as a whole this morning with forecasts suggesting sentiment from
both improving in November from October. As a result we would expect the euro
to strengthen should the data come in line or beyond these expectations.

Later today we also have a speech by Fed Chairman Ben
Bernanke at the National Economists Club in Washington, with expectations that
he will reiterate the comments made by William Dudley that economic growth isn’t
sufficient yet to taper stimulus.

Key Announcements:

10.00am – EUR – Eurozone ZEW Survey of Economic Sentiment
(Nov): Expected to be higher at 63.1.

10.00am – EUR – German ZEW Survey of Economic Sentiment
(Nov): Expected to be higher at 53.8.