EUR
The Euro lost significant ground yesterday afternoon after the European Central
Bank (ECB) President Mario Draghi said he was studying new stimulus measures
that could be unveiled as soon as December and is prepared to cut its deposit
rate deeper into negative territory if needed to fight falling
prices. Consumer prices in the 19-country Euro-zone slipped by 0.1 percent
in September, prompting calls for the ECB to expand or extend its 60 billion

EUR
The Euro lost significant ground yesterday afternoon after the European Central
Bank (ECB) President Mario Draghi said he was studying new stimulus measures
that could be unveiled as soon as December and is prepared to cut its deposit
rate deeper into negative territory if needed to fight falling
prices. Consumer prices in the 19-country Euro-zone slipped by 0.1 percent
in September, prompting calls for the ECB to expand or extend its 60 billion
euros a month quantitative easing program that was designed to push
inflation back to the ECB’s target of just under 2 percent.

ECB chief Mario Draghi said falling inflation expectations, driven in part by
lower-than-expected demand for oil, has led the central bank to consider a
wide variety of possible measures, including a deposit rate cut, to shore up
inflation.

GBP
The Pound gained across the board yesterday morning after the UK’s retail sales
rose in September at their fastest monthly pace in almost two years as shoppers
with more cash in their pockets bought beers to toast the Rugby World Cup, the
first held in Britain since 1999. Retail sales volumes surged last month
by 1.9 percent exceeded all expectations and marked a break with disappointing
data from the previous two months.  Consumers, a key engine of Britain’s
economic recovery, are benefiting from a pick-up in wages, falling prices for
goods in stores and record-low interest rates that markets do not expect to
rise before late next year.

USD
The Dollar was boosted by another strong jobs figure after the number of
Americans claiming unemployment benefits fell to 259k last week hovering around
42-year lows. The strong jobs figure accompanied with the home resales figure
points at solid domestic fundamentals even as the global economy falters. 

Key Announcements
08:00 – EUR – French flash manufacturing is forecast to decline
08:30 – EUR – German flash manufacturing is forecast to decline