Markets Stall on Weak US earnings

Currencies Direct October 22nd 2012 - < 1 minute read

As the markets continued to digest
the EU Summit it appears it has failed, again, to ignite investor
confidence with hunger for risk in US trade on Friday reversing
Thursday’s gains. Disappointing Existing Home Sales and corporate
earnings in America helped to strengthen the US Dollar as investors
sought a safe haven away from riskier assets including the

The Euro traded sideways against
Sterling and US Dollar on Friday after the initial Summit
announcement of a succession of central bank powers to Brussels
failed to keep investor sentiment and led to a run on EUR/USD and
also reversing gains on EUR/GBP. Without further political
statements, further delays in Troika sign off for the privatisation
of Greek services, and next tranche payment, may keep Euro demand
weak until German and French PMI and German IFO Business Climate
Index on Wednesday.

A better than expected Retail
figure on Thursday helped to prop up sterling against the a week of
a strengthening Euro after further speculation that more QE could
be on the way from BoE as soon as November. 

Other news there has been continued
talk of the central Bank of Japan using more stimulus measures to
boost the economy as exports slow, 10% down, and it announced that
it has downgraded economic outlook for 8/9 regions in Japan for the
next quarter.

This week we have AUD CPI, German
IFO Business Climate Index (Wednesday), US Interest Rate decision
and Durable Goods data and UK GDP (Thursday) and US GDP

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Currencies Direct

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