Dawn Desjardins of RBC Capital Markets notes that the drop in non-farm payrolls in Oct was "broad based, with only government employment rising of the major industry categories." The data supports RBCCM's view that the US is already in recession. RBCCM looks for the US economy to continue to contract in Q4 and early Q1 2009, but then expects that the "combination of accommodative monetary policy and an anticipated narrowing in spreads" will be "sufficient to put growth back on an improving trend in the second half of 2009." If the financial market tone slowly improves, the Fed may be content to keep rates at a low 1.0% through 2009 "to ensure that the improving trend in growth is sustained," Desjardin says.

Sources noting that Porsche Group of Germany just announced that its 07/08 earnings rose to E8.569 bn before taxes vs E5.857 bn in the prior year, acknowledging that the jump in profit was
partly due to the "special influences" of its VW holdings.

The dollar dropped for the first time in three days against the euro as the U.S. unemployment rate climbed to the highest level since 1994, indicating the financial crisis is taking a sustained toll.
The yen fell against the euro, the dollar, the Australian dollar and New Zealand's currency as a rally in global stocks on the prospect of further interest-rate cuts by the Federal Reserve encouraged investors to buy higher-yielding assets financed by low-cost loans in Japan.
The yen depreciated against the Aussie and versus New Zealand's dollar as stock gains boosted carry trades, in which investors get funds in a country with low borrowing costs and buy assets where returns are higher.
Futures on the Chicago Board of Trade showed a 93 percent chance the Fed will halve its 1 percent target rate for overnight lending between banks at its Dec. 16 meeting, compared with 55 percent odds a week ago. The contract may not be as precise an indicator as in the past as the effective rate, a volume-weighted average of trades between major brokers for overnight funds, approaches zero.
U.S. employers eliminated 240,000 jobs last month after shedding 284,000 positions in September, the Labor Department reported today in Washington. The median forecast of economists was for a decline of 200,000 in October. The unemployment rate increased to 6.5 percent from 6.1 percent in the previous month.
In a sign the U.S. housing market remains weak, the National Association of Realtors said today in Washington that its index of signed home purchase agreements, or pending home resales, fell 4.6 percent in September.

GS expects unemployment by the end of 2009 at a level of 8-1/2%

Wall Street rallied Friday morning as investors used a huge stock selloff over the last two sessions as a reason to scoop up battered shares, despite a brutal October jobs report.
Employers cut 240,000 jobs from their payrolls in October, the 10th straight month of cuts. That brought the number of job losses in 2008 so far to 1.2 million. The unemployment rate, generated by a separate survey, surged to 6.5%.
Both figures topped expectations, according to a Briefing.com survey of economists. Wall Street had expected job losses of 200,000 and an unemployment rate of 6.3%.
Since Tuesday, the Dow has lost 929 points, its biggest two-day point decline ever, according to Dow Jones. The percentage decline was 9.7% and its worst two-day drop since Oct. 1987.
Ford Motor reported a $3 billion operating loss in its latest quarter and said it would cut staff and capital spending in order to hang on to capital.
The dollar fell against the euro and gained versus the yen.
COMEX gold for December delivery rose $7.80 to $740 an ounce.
U.S. light crude oil for December delivery rose $1.28 to $62.05 a barrel on the New York Mercantile Exchange, after ending the previous session at a 19-month low.
The credit market continued to improve. The 3-month Libor fell to 2.29% from 2.39% Thursday, a nearly four-year low, according to Dow Jones. Overnight Libor held steady at 0.33%, after falling to an all-time low of 0.32% earlier this week. Libor is a key interbank lending rate.
Treasury prices slumped, raising the yield on the benchmark 10-year note to 3.77% from 3.69% late Thursday. Treasury prices and yields move in opposite directions.

Economists at BOA say with the economy in recession and GDP declining at about an average 3% annualized over Q4 and 1Q 2009, they expect rapid payroll declines to continue well into 2009, before gradually abating. They expect the unemployment rate to continue to rise rapidly in coming months, likely peaking near 7.7% by 3Q 2009.

Stocks have extended their gains to trade at fresh morning highs. All ten of the major economic sectors are now trading higher; each sector is up more than 1%.

Ian Shepherdson of High Frequency Economics says with a worse-than-expected headline (-240k vs MNI median -200k) in non-farm payrolls and a "huge" net revision to prior months of -179k, the jobs picture "is even worse than it seems at first." The unemployment rate, which rose from 6.1% to 6.5% "is likely to break the 7% mark early next year," he says. Shepherdson says the report is "horrible in every way."

EUR/USD $1.2675, $1.2975, $1.3015, $1.3300
USD/JPY Y98.50, Y100.00, Y105.00
USD/CAD C$1.1500, C$1.2300

A mixed tone is now indicated in premarket action following glum economic and earnings data (S&P futures -1.50, Nasdaq futures +6.00). Earnings estimates continue to be honed in amid ongoing economic and financial market strife.
Microsoft chief executive, Steve Ballmer, indicated that his company will not make a bid for Yahoo!, according to Financial Times.
WSJ reported that federal officials are considering ways to ease financial pressure on AIG, including changing the terms of its $85 billion government loan.
Nonfarm payrolls fell by 240,000 in October, marking the 10th consecutive monthly decline. The drop in payrolls was worse than the consensus, which called for 200,000 jobs to be lost. Nonfarm payrolls declined by 284,000 in September. The national unemployment rate now stands at 6.5%, which is up from the 6.1% unemployment rate reported last month. Economists were expecting an unemployment rate of 6.3%. Average hourly earnings were up 0.2% month-over-month and 3.5% year-over-year. Both were in-line with the consensus.
In addition to burning through nearly $8 billion in cash during the third quarter, Ford announced a loss of $1.31 per share. Qualcomm posted better-than-expected quarterly earnings results, but disappointed investors by issuing downside guidance. Walt Disney and Sprint both failed to hit analysts' prevailing third quarter earnings per share estimates.

European equity bourses are maintaining opening gains Friday, with FTSE-100 outperforming after the sharp fall in Sterling LIBOR rates, which is seen as a positive step in thawing the
freeze in bank lending and in turn underpinned gains in banking stocks. British Airways is a notable gainer after it said that it would make a small profit in the current financial year and defied expectations of a full-year loss. Oil stocks are higher along with mining stocks, tracking rise in underlying oil and metal prices. CAC-40 is up 13pts (+0.37%), Xetra-DAX is up 14pts (+0.81%) and FTSE-100 is up 62pts (+1.44%).

Average hourly earnings (October) 0,2%
Unemployment rate (October) 6,5%
Nonfarm payrolls (October) -240К

"Using the ADP premium of 66K averaged over the past five months, October's ADP of -157K suggests that Friday's non-farm payrolls will be -223K compared to consensus expectations of -200K."

The following data were published
06:45 Switzerland Unemployment Rate s.a. (Oct) 2,6% 2,6% 2,6%
06:45 Switzerland Unemployment Rate (Oct) 2,5% 2,5% 2,4%
07:00 Germany Current account (September) unadjusted, bln 15.0 7,5
07:00 Germany Trade balance (September) unadjusted, bln 15.0 10,6
11:00 Germany Industrial production (September) unadjusted Y/Y 4.5% -4,7
11:00 Germany Industrial production (September) adjusted Y/Y -2.1% 0.5% 1,7%
11:00 Germany Industrial production (September) adjusted -0.9% 3,4%
12:00 Canada Unemployment Rate (Oct) 6,2% 6,2% 6,1%
12:00 Canada Net Change in Employment (Oct) 9.5К 0,5К 106.9К

The dollar fell against the yen and the euro on speculation a government report will show the U.S. economy lost the most jobs since 2003, bolstering the case for the Federal Reserve to lower interest rates.
The U.S. currency also declined versus the British pound as futures traders bet the Fed will cut borrowing costs by half a percentage point to 0.5 percent at its next meeting, compared with the U.K.'s benchmark rate of 3 percent. A Labor Department report today may show U.S. unemployment rose to a five-year high as the global economic slowdown worsened.
``Growth is pretty much the market's concern at the moment and the jobs data might add to that picture,'' said Ian Stannard, a senior currency strategist in London at BNP Paribas SA, the most accurate forecaster in a 2007. ``We've been looking for the dollar to correct lower.'' EUR/USD started the day near $1.2650 before posted session high at $1.2850. . Disappointing German IP data then knocked the rate under $1.2800 ahead of the US open. Bids $1.2620, $1.2590.

USD/JPY

"An even bigger drop is possible given this month's: 4pt fall in Jobs Plentiful index, 5pt rise in Jobs Hard to Get index, 79% y/y rise in this morning's Challenger Job Cuts, and 7pt drop in ISM mfg employment to 35."

- Oct unemployment 6.2% (Sep 6.1%)

The dollar fell against the yen and the euro on speculation a government report will show the U.S. economy lost the most jobs since 2003, bolstering the case for the Federal Reserve to lower interest rates.
The U.S. currency also declined versus the British pound as futures traders bet the Fed will cut borrowing costs by half a percentage point to 0.5 percent at its next meeting, compared with the U.K.'s benchmark rate of 3 percent. A Labor Department report today may show U.S. unemployment rose to a five-year high as the global economic slowdown worsened.
``Growth is pretty much the market's concern at the moment and the jobs data might add to that picture,'' said Ian Stannard, a senior currency strategist in London at BNP Paribas SA, the most accurate forecaster in a 2007 Bloomberg survey. ``We've been looking for the dollar to correct lower.''
The dollar fell 0.5 percent against the euro this week. The pound lost 1.7 percent against the U.S. currency over the five days as the Bank of England yesterday reduced its main rate to the lowest level since 1955. The euro fell 0.6 percent against the yen this week after the European Central Bank lowered rates by half a point to 3.25 percent.
U.S. payrolls fell by 200,000 last month, and the unemployment rate rose to a five-year high of 6.3 percent. The report from the Labor Department is due at 8:30 a.m. in Washington. The economy contracted 0.3 percent in the third quarter, the biggest decline since 2001.
``Sentiment is already pretty grim as far as the labor market is concerned,'' said Samarjit Shankar, director of strategy for the global markets group in Boston at Bank of New York Mellon, the world's largest custodial bank, with more than $23 trillion in assets under administration. ``It will take a huge surprise on the upside to provide some support for U.S. dollar sentiment.''
Futures on the Chicago Board of Trade showed a 90 percent chance yesterday the Fed will cut its 1 percent target lending rate for overnight bank loans by a half-percentage point at its Dec. 16 meeting, compared with 55 percent odds a week ago.

EUR/USD $1.2675, $1.2975, $1.3015, $1.3300
USD/JPY Y98.50, Y100.00, Y105.00
USD/CAD C$1.1500, C$1.2300

-- Says ECB took rate decision "that had to be taken"
-- Says ECB is doing good job.

Resistance 3: Y100.55
Resistance 2: Y98.90
Resistance 1: Y98.40
Current price: Y97.29
Support 1: Y96.10
Support 2: Y95.70
Support 3: Y94.60
Comments: Dollar-yen still sees daily studies encouraging a test of Y100.55/85, although the market has slipped under the 5&21-DMAs. Further Fibonacci resistance is at Y101.50, while support is at Y96.10 and the Tenkan line at Y95.70. Initial resistance is now the 5-day moving average and Kijun line at Y98.40/90.

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1717
Support 1: Chf1.1690
Support 2: Chf1.1575
Support 3: Chf1.1430

Comments: As expected after correction dollar regained positive mood as Switzerland's central bank lowered its benchmark rate to 2% from 2.5 percent.
Upside bias favoured while the rate holds above the daily moving averages. Break above Chf1.1800 is needed to open the way up to Chf1.1890/95 (October 2007 high and 61.8% retracement of the sell-off from Chf1.3285 to this year's low at Chf0.9650) and Chf1.1920.Yesterday's low Chf1.1570/60 remains the closest support. Monday low at Chf1.1480 (50% Chf1.1750-Chf1.1210 move) is the stronger one. Break of Chf1.1350 and Chf1.1210 is needed to extend losses to Chf1.1130/00 (10 October low and 38.2% of the up move from Chf1.0690).

Resistance 3: $1.5980
Resistance 2: $1.5800
Resistance 1: $1.5720
Current price: $1.5802
Support 1: $1.5540
Support 2: $1.5400
Support 3: $1.5260

Comments: Closest support spotted at the session low $1.5535/40. A decisive break below October 28 low $1.5400 puts October 24, 27 low at $1.5260/80 back in focus. Resistance comes at $1.5800 (50%) and $1.5980/90 (resistance since October 20) is possible.

Resistance 3: $1.3300
Resistance 2: $1.3100
Resistance 1: $1.3050
Current price: $1.2800
Support 1: $1.2660
Support 2: $1.2530
Support 3: $1.2330
Comments:Yesterday US currency gained versus European rivals after The ECB reduced its main refinancing rate by 50 basis points to 3.25%.. ECB President Jean-ClaudeTrichet said that more rate cuts are possible.

Today the dollar eased against the euro on speculation a government report will show the U.S. economy lost the most jobs since 2003, bolstering the case for the Federal Reserve to lower interest rates.Nonfarm payrolls probably fall by 200,000 in October, according to forecasts.

Sustained break above 21DMA, which is today valued at $1.3040 will lead to retest of $1.3110/20 (yesterday high and upper bound of the triangle). October 30 peak $1.3300 (38.2% of the $1.4860 decline) remains pivotal resistance. Closest support is the lower bound of the triangle formation and session low $1.2660/50. Further down rests Nov 4 low $1.2530.October 27 and 28 lows at $1.2330 area remain the key target.

FTSE-100 is outperforming on talk that Sterling LIBOR rates are indicated significantly lower in the wake of the shocking 150bps rate cut by the Bank of England on Thursday. Traders say 3-mth Sterling LIBOR is indicated at 4.50% vs 5.56125% Thursday and 6-month LIBOR is indicated at 4.62% vs 5.67375% Thursday. CAC-40 is up 27pts (+0.78%), Xetra-DAX is up 40pts (+0.81%) and FTSE-100 is up 58pts (+1.35%).

Extending the recovery from the $1.5535 Asian lows, with cable pressing back to $1.5800. Light offers now noted into $1.5820 and $1.5970 with a break then exposing a potential steeper move towards Thursday's peak at $1.6025.

Change % Change Last
Nikkei -622.10 -6.50% 8 899.14
Topix -57.61 -6.00% 909.30
FTSE -258.32 -5.70% 4,272.41
DAX-353.30 -6.84% 4,813.57
CAC -230.86 -6.38% 3,387.25
Dow -443.48 -4.85% 8,695.79
NASDAQ -72.94 -4.34% 1,608.70
S&P -47.89 -5.03% 904.88
S&P 500 -52.97 -5.27% 952.78
10yr Note +0.1300 +0.035% 3.707%
NYMEX Crude Oil -4.53 -6.94% 60.77
Gold -10.20 -1.37% 732.20

Japanese stocks dropped for the first time in three days as worse-than-expected U.S. jobs and services data caused a rally sparked by Barack Obama's presidential election victory to fizzle out.
Sony Corp., which gets a quarter of its sales from the U.S., and Canon Inc. sank more than 11 percent. Nippon Steel Corp., the world's No. 2 maker of the alloy, dropped 6.8 percent after bigger rival ArcelorMittal doubled production cuts amid slowing demand. Oil explorer Inpex Corp. slid 11 percent after crude tumbled. Isuzu Motors Ltd. and Orix Corp. fell after slashing profit forecasts.
The Nikkei 225 Stock Average slumped 622.10, or 6.5 percent, to close at 8,899.14 in Tokyo. The broader Topix index fell 57.61, or 6 percent, to 909.30, with almost seven stocks sliding for each that rose on the gauge.
Sony, the world's second-biggest maker of consumer electronics, lost 11 percent to 2,295 yen, erasing yesterday's 9.1 percent surge. Canon, the world's biggest camera maker, dropped 13 percent to 3,470 yen after gaining 13 percent yesterday.
Nippon Steel fell 6.8 percent to 331 yen, while JFE Holdings Inc., Japan's second largest steelmaker, slid 7.4 percent to 2,645 yen. ArcelorMittal, the world's biggest steelmaker, yesterday forecast an earnings drop of as much as 48 percent in the fourth quarter and said it will cut global output more than 30 percent.
Inpex, Japan's largest oil and gas explorer, sank 11 percent to 599,000 yen, while Japan Petroleum Exploration Co. lost 6.3 percent to 4,170 yen. Both companies surged more than 12 percent yesterday. Sumitomo Metal Mining Co., Japan's second- biggest copper smelter, fell 7.9 percent to 756 yen.
Orix, the nation's largest non-bank financial company, plummeted 14 percent to 10,300 yen. The company yesterday cut its full-year earnings estimate by 40 percent, citing falling profit from securities transactions.

European stocks dropped for a second day as European Central Bank President Jean-Claude Trichet said the financial crisis may lead to a protracted economic slump, deepening concern the slowdown will stifle profit growth.
Stocks initially pared declines after the Bank of England cut its rate more than economists expected. The ECB's reduction that matched predictions followed by declines in early U.S. trading dragged shares lower. Policy makers in Switzerland and Denmark also reduced rates today.
The bank discussed reducing rates by 75 basis points, he said. Today's move was the second cut in less than a month.
National benchmarks fell in all 18 western European markets. The U.K.'s FTSE 100 slid 5.7 percent with Royal Dutch Shell Plc and BHP Billiton Ltd. following declines in oil and metal prices. Germany's DAX tumbled 6.8 percent, while France's CAC 40 retreated 6.4 percent.
Adidas, the world's second-largest sporting-goods maker, fell 9.6 percent to 26.64 euros after reporting third-quarter profit of 302 million euros ($388 million). That missed the 320.5 million-euro estimate in a Bloomberg survey of five analysts.
Axa dropped 9.2 percent to 15.15 euros. Europe's largest insurer had a 3.4 percent decline to 20.14 billion euros in third-quarter revenue on lower sales of life and savings products in the U.S. and U.K. That compares with the 20.2 billion-euro estimate of eight analysts surveyed by Bloomberg.
Earnings for the 956 companies in western Europe that reported results since Oct. 7 declined 6.7 percent on average.
Shell, Europe's biggest energy company, retreated 7.4 percent to 1,642 pence. Total SA, the region's largest oil refiner, dropped 6.4 percent to 40.02 euros.
Oil slumped, matching yesterday's loss of more than 7 percent, on signs that fuel demand will contract as the global economy slows.
Mining shares retreated as copper slumped. BHP Billiton, the world's largest mining company, sank 15 percent to 969 pence. Anglo American Plc, the fourth-biggest diversified mining company, tumbled 15 percent to 1,326 pence.

Downbeat economic data, abysmal retail sales, and weak business prospects reminded investors just how tenuous the macro environment has become. Sellers dominated Thursday's action and pushed stocks sharply lower for the second straight session. The two-day slide amounted to a 10.0% loss, the worst two-day drop in nearly one month.
Job markets remain loose as claims stand at recession-like levels. Weekly jobless claims for the week ended Nov. 1 totaled 481,000, down 4,000 from the prior week. The weekly number was roughly in-line with the consensus estimate, and the four-week moving average held steady at 477,000. Economists await the October unemployment rate due tomorrow morning.
Nonfarm business productivity rose at a 1.1% annual rate in the third quarter, in-line with expectations. Unit labor costs rose at a 3.6% annual rate, which was more than expected.
With job losses mounting, consumers are less willing to spend their discretionary dollars. In turn, Nordstrom (-0.78), Gap ( -0.38), American Eagle (-0.16), and Abercrombie & Fitch (-0.23) all reported double-digit declines in October same-store sales.
Wholesalers and discounters like BJ's Wholesale (+0.64) and Wal-Mart (+0.34) fared better, able to benefit by attracting cash-strapped shoppers to their stores. Both posted increased same-store sales for October.
Retailers haven't been the only companies battling against stiff macro headwinds. Tech bellwether Cisco (-0.45) posted better-than-expected earnings per share results for the latest quarter, but disappointed when it announced it expects revenue to take a downturn.
Challenging business conditions continue weighing on actual earnings results and earnings expectations. Analysts at Morgan Stanley project Goldman Sachs (-6.71) will post its first quarterly loss since the former Wall Street star went public just over a decade ago.
Declines among financial stocks made them the worst performing economic sector. It shed 6.7% this session and is now just 10.8% above its 52-week low, reached nearly two weeks ago.
After Google (-11.02) walked away from a proposed business alliance with Yahoo! (+0.04), Yahoo stated it is a strategic fit for Microsoft (-1.20). Microsoft offered to pay Yahoo roughly $33 per share earlier this year, but walked away when Yahoo argued the price was too low.
The negative bias among market participants took stocks steadily lower as the session progressed. The major indices finished near their session lows, each down more than 6.5% week-to-date.

The euro fell against the dollar, the yen and the pound after European Central Bank President Jean- Claude Trichet said the economy ``weakened significantly'' and the International Monetary Fund cut growth forecasts for the region.
The European single currency slid the most this week versus the dollar as the ECB reduced its main interest rate by 50 basis points to 3.25 percent today, in line with a Bloomberg survey of economists, and Trichet said more cuts may follow. The Bank of England unexpectedly lowered its key rate by 150 basis points to 3 percent. Switzerland also cut borrowing costs.
``The market is disappointed with the ECB after the Bank of England's bigger-than-expected cut earlier today,'' said Daragh Maher, deputy head of global currency strategy in London at Calyon, the investment-banking arm of France's Credit Agricole SA. ``The ECB looks like it's behind the curve and the euro is being marked down on the back of that.''
``The intensification and broadening of the financial turmoil is likely to dampen global and euro-area demand for a rather protracted period of time,'' Trichet said today at a press conference in Frankfurt after the ECB meeting. ``In such an environment, price, cost and wage pressures should also moderate.''
Trichet said the ECB's rate-setting Governing Council discussed a 75 basis-point reduction.
Economists predict the ECB will continue to cut borrowing costs at the most aggressive pace in its 10-year history, taking its key rate to 2.5 percent by April as growth falters. All Group of Seven economies except Canada will contract next year, the IMF said today in an update to its World Economic Outlook report. China's economy will also shrink, the IMF said.
The Bank of England, led by Governor Mervyn King, reduced its key rate by the most in 16 years as the seizure in credit markets left Britain on the edge of its first recession since 1991. Signs the economy is faltering prompted a 50 billion-pound ($80 billion) bank rescue package from the government. The nation's main rate hasn't been lower since 1955.
Gains by the dollar may be limited before economic data tomorrow. U.S. payrolls fell by 200,000 last month and the unemployment rate rose to a five-year high of 6.3 percent, according to the median forecast of 75 economists surveyed by Bloomberg. The U.S. economy contracted 0.3 percent in the third quarter, the biggest decline since 2001.
European data for Friday starts at 0700GMT with the German trade balance for September, followed st 0745GMT by the French central government deficit and merchandise trade balance, also for September. UK data at 0930GMT sees personal insolvency and possession data, while the final main European data release for the week is German industrial output data, which is forecast at -0.5% m/m, -1.7% y/y. The main event for Friday comes at 1330GMT with the US labour market data, where non-farm payrolls are forecast to fall 200,000 in. October, continuing the downward trend. The unemployment rate is expected to rise to 6.3% after holding at 6.1% in September. Hourly
earnings are expected to rise 0.2% in October, while the average workweek is forecast to stay at 33.6 hours. US data continues at 1500GMT with wholesale inventories for September and the NAR Pending Home Sales for September.

Globex traded S&P Dec contract futures are trading 13 points higher at 917.5, with the Nasdaq Dec contract gaining 17.25 points to stand at 1257.75. The DJIA was last higher by 121 at 8621.

Resistance 3: Y100.55
Resistance 2: Y98.90
Resistance 1: Y98.40
Current price: Y97.33
Support 1: Y96.10
Support 2: Y95.70
Support 3: Y94.60
Comments: Dollar-yen still sees daily studies encouraging a test of Y100.55/85, although the market has slipped under the 5&21-DMAs. Further Fibonacci resistance is at Y101.50, while support is at Y96.10 and the Tenkan line at Y95.70. Initial resistance is now the 5-day moving average and Kijun line at Y98.40/90.

Resistance 3: Chf1.1950
Resistance 2: Chf1.1885
Resistance 1: Chf1.1800
Current price: Chf1.1700
Support 1: Chf1.1675
Support 2: Chf1.1575
Support 3: Chf1.1430

Comments: As expected after correction dollar regained positive mood as Switzerland's central bank lowered its benchmark rate to 2% from 2.5 percent.
Upside bias favoured while the rate holds above the daily moving averages. Break above Chf1.1800 is needed to open the way up to Chf1.1890/95 (October 2007 high and 61.8% retracement of the sell-off from Chf1.3285 to this year's low at Chf0.9650) and Chf1.1920.Yesterday's low Chf1.1570/60 remains the closest support. Monday low at Chf1.1480 (50% Chf1.1750-Chf1.1210 move) is the stronger one. Break of Chf1.1350 and Chf1.1210 is needed to extend losses to Chf1.1130/00 (10 October low and 38.2% of the up move from Chf1.0690).

Resistance 3: $1.5980
Resistance 2: $1.5800
Resistance 1: $1.5720
Current price: $1.5862
Support 1: $1.5540
Support 2: $1.5400
Support 3: $1.5260

Comments: The U.S. currency gave up some gains versus the British pound as futures traders increased bets the Fed will cut borrowing costs by half a percentage point to 0.5 percent compared with a benchmark rate of 3 percent in the U.K. A Labor Department report today may also show the unemployment rate in the U.S. rose to a five-year high as the global economic downturn deepened. Thursday pound fall against the dollar afterBOE slashed its key rate by 1.5 percentage points to 3%.
Closest support spotted at the session low $1.5535/40. A decisive break below October 28 low $1.5400 puts October 24, 27 low at $1.5260/80 back in focus. Resistance comes at $1.5720/30 (session high and 61.8%Fibo of the resent slide). Further up test of $1.5800 (50%) and $1.5980/90 (resistance since October 20) is possible.

The front-month Nymex WTI Dec 08 contract was last at $61.40, up 63 cents on the day but off the $61.55 high.

Resistance 3: $1.3300
Resistance 2: $1.3100
Resistance 1: $1.3050
Current price: $1.2780
Support 1: $1.2660
Support 2: $1.2530
Support 3: $1.2330
Comments:Yesterday US currency gained versus European rivals after The ECB reduced its main refinancing rate by 50 basis points to 3.25%.. ECB President Jean-ClaudeTrichet said that more rate cuts are possible.

Today the dollar eased against the euro on speculation a government report will show the U.S. economy lost the most jobs since 2003, bolstering the case for the Federal Reserve to lower interest rates.Nonfarm payrolls probably fall by 200,000 in October, according to forecasts.

Sustained break above 21DMA, which is today valued at $1.3040 will lead to retest of $1.3110/20 (yesterday high and upper bound of the triangle). October 30 peak $1.3300 (38.2% of the $1.4860 decline) remains pivotal resistance. Closest support is the lower bound of the triangle formation and session low $1.2660/50. Further down rests Nov 4 low $1.2530.October 27 and 28 lows at $1.2330 area remain the key target.

FTSE -42, DAX -44, CAC -12 and the Eurostoxx 50 -21.

The index was last 2.15% lower at 8707 - almost 5% above early lows.

High Low Close
EUR/USD 1.2956 1.2678 1.2715
USD/JPY 99.66 97.46 97.73
GBP/USD 1.6039 1.5564 1.5623
USD/CHF 1.1795 1.1568 1.1776

EUR/JPY 127.06 123.92 124.29
EUR/GBP 0.8156 0.7998 0.8136
GBP/JPY 157.65 152.11 152.68
GBP/CHF 1.8755 1.8349 1.8398


Change % Change Last
Nikkei -622.10 -6.50% 8 899.14
Topix -57.61 -6.00% 909.30
FTSE -258.32 -5.70% 4,272.41
DAX-353.30 -6.84% 4,813.57
CAC -230.86 -6.38% 3,387.25
Dow -443.48 -4.85% 8,695.79
NASDAQ -72.94 -4.34% 1,608.70
S&P -47.89 -5.03% 904.88
S&P 500 -52.97 -5.27% 952.78
10yr Note +0.1300 +0.035% 3.707%
NYMEX Crude Oil -4.53 -6.94% 60.77
Gold -10.20 -1.37% 732.20

06:45 Switzerland Unemployment Rate s.a. (Oct) 2,6% 2,6%
06:45 Switzerland Unemployment Rate (Oct) 2,4% 2,4%
07:00 Germany Current account (September) unadjusted, bln 7,3
07:00 Germany Trade balance (September) unadjusted, bln 10,6
11:00 Germany Industrial production (September) unadjusted Y/Y -4,7
11:00 Germany Industrial production (September) adjusted Y/Y 0.5% 1,7%
11:00 Germany Industrial production (September) adjusted -0.9% 3,4%
12:00 Canada Unemployment Rate (Oct) 6,2% 6,1%
12:00 Canada Net Change in Employment (Oct) 0,5К 106.9К
13:30 USA Average workweek (October) 33,6 33,6
13:30 USA Average hourly earnings (October) 0,2% 0,2%
13:30 USA Unemployment rate (October) 6,1% 6,1%
13:30 USA Nonfarm payrolls (October) -200К -159К
15:00 США Pending Home Sales (MoM) (Sep) 7,4%
15:00 USA Wholesale inventories (September) 0,4% 0,8%
20:00 USA Consumer credit (September), bln 0,0 -7,9