Investors will be eying FED for clues of QE3
Euro remains unconvincing but pushes higher against the USD. At the time of writing the EUR/USD is trading at 1.3790 gaining 0.69% against the buck. On average the single currency is up 0.33% against the major counterparts.
Major European indices were mostly in the green showing some signs of consolidation after the Greek PM sent shivers to investors earlier this week. Investors have stopped piling USD longs ahead of the FOMC, just in case they announce a third round of QE.
The Fed is also being expected to downgrade its growth forecasts.
Support amongst the majors remained relatively mixed with the CAD, Aussie and the Euro in green territory; but even the JPY and the Swiss franc were managing some gains.
Earlier today economic data from the Euro Zone showed that German unemployment rate inched higher for the month of October, even EZ PMI manufacturing slipped to 47.1 from a previous and expected 47.3.
From the United States the ADP National Employment report bode well for next Friday’s payrolls report and while the link between the two data is far from perfect; it encourages expectations. During October the US private sector employed more than the previous month and more than what had been expected.
Rudolf Muscat
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