EUR

In the Eurozone, investor confidence in Germany has hit a
four year high to 54.60, according to the monthly ZEW index. It found that
analysts and business people in the Eurozone’s largest economy are optimistic
about their countries prospects, partly due to a better economic outlook in the
euro area. The recent 0.25% in interest rates will go a long way to stimulate
demand in the EU Economy and improve business optimism

EUR

In the Eurozone, investor confidence in Germany has hit a
four year high to 54.60, according to the monthly ZEW index. It found that
analysts and business people in the Eurozone’s largest economy are optimistic
about their countries prospects, partly due to a better economic outlook in the
euro area. The recent 0.25% in interest rates will go a long way to stimulate
demand in the EU Economy and improve business optimism

European car sales were up 4.7% in October largely driven by
a 34% increase year on year in Spain due to a €1,000 government subsidy per new
cars purchased. 

Producer price index from Germany has put the euro under
pressure in early trade this morning with the euro down by 0.2% against the
pound and the US dollar.

GBP

Yesterday the OECD has cut its forecast for global economic
growth in 2014 to 3.6%, down from 4%. Advising that global economic conditions
are still vulnerable and the outlook for emerging markets is deteriorating.

However the OECD now forecasts the UK economy will grow by
2.4% in 2014. In May it had forecast 1.5%. Advising that stronger investment
and household spending will drive economic growth

UK car sales were also up 4.0% largely due to cheap
financing deals on new cars.

CNY

Chinas central bank will end its normal intervention in the
currency market and Borden the Yuan’s daily trading limit. Currently limits a
daily rate move to no more than 1% of the fixing level it sets for the day.
They will increase the role of market exchange rates and the central bank will
eventually exit from intervention. However the Peoples Bank of China did not
give a timeframe on these reforms.

USD

Fed Chairman, Ben Bernanke echoed comments made by Janet
Yellen and William Dudley last night by stating that the Fed remains highly accommodative
with its monetary policy and that interest rates in the US will not be raised until
quantitative easing ends. The US dollar came under pressure following these
comments.

Today

We have the Bank of England Minutes and the BoE voting
results. The voting results are unlikely to surprise markets but comments and
discussion on the decision to hold interest rates could shed some light on the
direction of the pound and their outlook for the UK economy and unemployment

We could see some dollar weakness tomorrow as US inflation
year on year is expected to fall from 1.2% to 1.0% and retail sales are
expected to be soft for the month of October. Keeping in mind that these
figures were derived during the 17 day government shutdown in October and could
be disappoint markets.

The FOMC is releasing the minutes of its meeting where the
Feds outlook on economic growth and its outlook for tapering its bond purchasing
scheme that has been used to help stimulate the US economy. It is largely
expected by economist that this tapering will not occur until March 19 meeting.

Key Announcements:

9.30am – GBP – BoE Minutes.

10.00am – CHF – ZEW Survey Expectations (Nov): Expected to
increase to 30.

12.00pm – USD – MBA Mortgage Applications (Nov 15):
Previously showed a fall of 0.5%.

13.30pm – USD – Consumer Price Index (Oct): Expected to fall
to 1% year on year.

13.30pm – USD – Retail Sales (Oct): Expected to increase
marginally by 0.1%.

15.00pm – USD – Existing Home Sales Change (Oct): Expected
to fall by 2.6%.

19.00pm – USD – FOMC Minutes.