American Express Company
The credit card and travel services company reported a 24% decline in third-quarter earnings, but results were better than analysts expected.

Caterpillar Inc
The heavy equipment maker reported a dip in third-quarter earnings to $868M compared to the same period last year, when the company reported $927M.

Pfizer Inc
The pharmaceutical reported that sales slipped slightly in the third quarter, but still totaled nearly $12B. Adjusted earnings of 62 cents per share beat analysts’ expectations.

Avigen Inc
The drug developer said it was “disappointed” after a Phase 2b study of AV650 to treat spasticity associated with multiple sclerosis did not achieve statistical significance.

The yen climbed to a three-year high against the euro and gained versus the dollar on bets central banks will lower borrowing costs to limit the global economic slump, encouraging investors to sell higher-yielding assets.
Canada's dollar dropped to the lowest against the greenback since August 2005 as the central bank cut its main lending rate. Australia's currency fell as policy makers signaled they may cut borrowing costs further. The dollar rose to a 19-month high against the euro on bets the European Central Bank will reduce interest rates at a faster pace than the Federal Reserve.
``The element of risk aversion helps the dollar and the yen, which has been the trend for a while,'' said Paresh Upadhyaya, who helps manage $50 billion in currency assets as a senior vice president at Putnam Investments LLC in Boston. ``The convergence of interest rates will overtake the risk aversion element to become the most important support for the dollar going forward.''
``It's probably lending support to the dollar as investors pull their money out of emerging-market countries,'' said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York.
Canada's currency dropped as much as 2.5 percent to C$1.2208 per U.S. dollar after the Bank of Canada reduced its benchmark interest rate by a quarter-percentage point to 2.25 percent. Policy makers said in a statement that ``some further monetary stimulus will likely be required.''
The Australian dollar fell 2.6 percent to 68.63 U.S. cents as minutes of the Reserve Bank's Oct. 7 meeting showed policy makers said inflation will slow at a faster rate than previously expected as the economy slows, fueling expectations for another cut. They lowered the rate at this month's meeting by 1 percentage point, the most since 1992, to 6 percent.
Investors bet the ECB will lower borrowing costs by another 0.75 percentage point by June after cutting the main refinancing rate by a half-percentage point to 3.75 percent on Oct. 8, part of coordinated reductions by major central banks.
``The economic fallout of the crisis will lead to more aggressive policy actions in major countries,'' said Tom Fitzpatrick, global head of currency strategy at Citigroup Global Markets Inc. in New York. ``The yen and the dollar will be the beneficiaries.''
The ICE futures Exchange's Dollar Index, which tracks the greenback versus the currencies of six major U.S. trading partners, touched 83.70 today, the strongest since March 14.

Stocks slipped Tuesday morning as investors stepped back after the previous session's more-than-400-point rally on the Dow Jones industrial average.
It was the Dow's eighth-biggest one-day point advance ever. But the rally sparked no follow-up Tuesday as investors eyed a rash of mixed corporate earnings.
Third-quarter earnings are currently on track to have fallen almost 10% from a year ago, according to the latest estimates from tracking firm Thomson Reuters.
DuPont reported a big drop in earnings due to manufacturing disruptions in the wake of Hurricane Ike. The chemical giant also warned that full-year results won't meet forecasts. Shares fell 3%.
Caterpillar reported lower earnings and higher revenue versus a year ago, leaving shares little changed. Pfizer reported higher quarterly earnings that topped estimates. Shares gained 2%.
Another Dow component, American Express, reported weaker quarterly profit after the close of trade Monday. However, the results were better than expected and shares gained 4% early Tuesday.
Texas Instruments also reported reduced third-quarter profit after the close Monday and forecast fourth-quarter revenue would fall sharply, missing estimates. The chipmaker also said it is looking to sell part of its wireless operations.
Treasury prices rallied, lowering the yield on the 10-year note to 3.79% from 3.84% late Monday. Treasury prices and yields move in opposite directions.
The yield on the 3-month Treasury bill, seen as the safest place to put money in the short term, rose to 1.255% from 1.07% late Monday as investors began to pull money out of the safer investment and put it back in stocks.
Last week, the 3-month fell to below 0.2%. Last month, it fell to a 68-year low around 0% as investor panic hit its peak.
U.S. light crude oil for November delivery fell $3.25 to $71 a barrel on the New York Mercantile Exchange after hitting a 13-month low last week.
COMEX gold for December delivery fell $17 to $773 an ounce.

Dollar-yen stalls at Y100.25/30 but struggles to press higher. Bids being seen at current levels (and again at Y100.00/10), but may not be enough to prevent a sub Y100 move if momentum starts to mount.

Fresh lows for the day being notched around $1.3150 as any residual demand/barrier interest at $1.3150 gets taken to the cleaners. Bids eyed at $1.3100 area but order books remain sparse at best.

"Major markets have corrected higher; while this move can extend in the near term, we do not believe the lows are in yet. S&P ST momentum is bullish with scope to the 1075 area in cash. We are waiting for selling opportunities to capture the next leg down."

The break of the 2008 lows near $1.3258 seen Oct 10 suggests the pair "is poised to make another leg lower," say Credit Suisse strategists. "The price action suggests there is no particular
fundamental scenario supportive of the euro at this time and capitulation selling pressure in the pair remain elevated," they say. CS technical team notes initial support around $1.3075, the 38.2% retracement of the 2000 to 2008 rally in the euro. Below that, additional support should be seen at $1.2870, the 2007 lows.

Recovery extended to $1.7030, with offers noted in place between $1.7030/35. Further offers seen placed at $1.7050 ahead of $1.7070/75. Rate currently trades around $1.7010. Bids now seen between $1.7005/95, a break below to open a deeper move toward $1.6980 ahead of earlier lows around $1.6962.

The FTSE 100 is lower by 1.6% with Cac in Paris outperforming but still lower by 0.3% and the Frankfurt Dax is lower by 1.9%

U.S. stock futures fell Tuesday, as investors moved to the sidelines after a tremendous rally that sent the Dow surging more than 400 points.




A lower start is expected as S&P 500 and Nasdaq 100 futures trade near session lows: S&P futures vs fair value: -11.90. Nasdaq futures vs fair value: -26.50. Kirk Kerkorian's Tracinda plans to reduce its holdings of Ford (F) due to value it sees in gaming and hospitality and the oil and gas industries. It has sold 7.3 million shares of Ford in the open market for an average price of $2.43 per share and plans to further reduce its Ford holdings, including the possibility of the sale of all its 133,500,000 shares, or 6.1% stake. Ford is down 2.6% in premarket trading. In commodity trading, oil prices are down 2.3% to $72.58 per barrel and gold is down 1.4% to $779.20 per ounce. The dollar is up 0.8% as it hits a fresh 52-week high.
Dow components, Pfizer (PFE) and 3M (MMM) posted a larger-than-expected increase in earnings per share. American Express (AXP) saw earnings decline, but its results topped expectations. DuPont (DD) posted upside results for its latest quarter, but issued downside guidance. Caterpillar (CAT) slightly missed estimates. In other earnings news, Lockheed Martin (LMT) and Schering-Plough (SGP) topped expectations. Coach (COH) reported in-line earnings. Biogen (BIIB) posted upside results for its latest quarter, but issued downside guidance for fiscal year 2008. Texas Instruments (TXN) reported a larger-than-expected drop in earnings per share and gave a downside earnings estimate for the fourth quarter. SanDisk (SNDK) reported a larger-than-expected loss. BlackRock (BLK) and US Bancorp (USB) reported earnings that missed estimates, although it is not clear if they are comparable. Separately, more overseas governments have moved to shore the financial system. France plans to purchase roughly $14 billion in debt from six of its largest banks. Credit markets continue to show improvement with Libor decreasing across all terms and the TED Spread falling 36 basis points to 2.62% -- its seventh consecutive decline.

"The weaker outlook for global demand will increase the drag on the Canadian economy coming from exports. Lower commodity prices will also dampen the outlook, working through a deterioration in Canada's terms of trade to moderate domestic demand growth. The marked tightening in Canadian credit conditions in recent weeks will restrain business and housing investment. The Bank expects growth to be sluggish through the first quarter of next year, then to pick up over the rest of 2009 and to accelerate to above-potential growth in 2010 supported by improving credit conditions, the lagged effects of monetary policy actions and stronger global growth. The recent sizeable depreciation of the Canadian dollar will also provide an important offset to the effects of weaker global demand and lower commodity prices. Overall, the Bank projects average annual growth in real GDP of 0.6 per cent in both 2008 and 2009.

- Overnight rate target eases to 2.25%, bank rate now 2.50%

Extends rally to C$1.2085, following the break above C$1.2020. Offers now seen placed between C$1.2095/00. Bank of Canada rate decision due at 1300GMT, with market looking for an other cut, following the recent Oct8 coordinated 50 bps cut, of between 25-50bp. Current target overnight rate stands at 2.50%

Investors sell the euro versus the dollar because the European Central Bank is likely to cut its benchmark rate toward 2.5 percent as oil prices fall and growth slows, Citigroup Global Markets Inc. said.
``We believe that there is potentially a perfect storm building against the euro,'' wrote Tom Fitzpatrick, New York- based global currency head of strategy at Citigroup Global Markets, in a research note yesterday. The currency may fall to ``at least $1.28 by year-end and maybe even continue lower in 2009.''
The yen rose against the euro and the Australian dollar on speculation central banks around the world will lower interest rates, spurring investors to sell higher-yielding assets funded in Japan.
The yen gained the most against the Australian dollar after the Reserve Bank of Australia said it saw a ``strong economic case'' for its Oct. 7 interest-rate reduction, fueling expectations for another cut. The U.S. dollar rose to an 18- month high against the euro after Federal Reserve Chairman Ben S. Bernanke called yesterday for government-stimulus measures to avert a prolonged recession.
``The RBA minutes are a reason to push the yen higher against the euro and other currencies,'' said Motonari Ogawa, director of currency trading in Tokyo at Barclays Capital Inc., a unit of the U.K.'s third-biggest bank. ``It's damaging for sentiment toward higher-yielding currencies.''





EUR/USD remained under the pressure and ahead of US opening fell under $1.3200 mark. Bids $1.3200, stops $1.3180, offers $1.3260, $1.3280/85

Stops scattered down to Y133.10 now all done as the cross comes under renewed pressure into US dealing, weighed down as Dow futures extend losses and Asian sovereign supply in dollar-yen kicks in. A clean break of Y133.00 would open up a test of this month's base, also the low for the year at Y132.20.

"It is possible that the Fed decides instead to have Fed funds at 0.25% or 0.50%, given its desire to pay banks some interest on their deposits, an authority that was recently granted to the Fed in the recent TARP legislation. By paying interest, the Fed can already engage in quantitative easing without the need to cut rates to zero." Their reason is unemployment is heading to 8% by early 2010 and 10-year note should fall to 2.9% or lower.

Seen meeting resistance around $1.3260, the corresponding to a 61.8% retrace of the last move down from $1.3350 to $1.3206. While rate holds below here seen keeping focus ion the downside, a break above to allow for a move back toward $1.3290 (earlier break out point). Bids remain $1.3210/00. Break above session high $1.3350 to target Monday high $1.3520/30

The dollar posted new 18-month high against the euro after yesterday U.S. Federal Reserve Chairman Ben S. Bernanke called for further government stimulus measures to avert a prolonged recession.
The greenback was also close to its strongest in a week versus the yen after the White House said it may back such measures, having previously withheld support for additions to a $168 billion package approved in February. The Australian dollar declined after the central bank said it saw a ``strong economic case'' for its Oct. 7 interest-rate reduction, fueling speculation it may cut borrowing costs further.
``An additional stimulus package will support the dollar,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``This show that U.S. officials are prepared to go far to limit damage to the economy.''
U.S. Lawmakers should consider ``measures to help improve access to credit by consumers, homebuyers, businesses and other borrowers,'' Bernanke said in testimony to the House Budget Committee yesterday. White House Press Secretary Dana Perino said officials are ``open'' to the idea of a new plan.
Traders expect the European Central Bank to lower borrowing costs further after cutting the main refinancing rate by half a percentage point to 3.75 percent on Oct. 8 as part of coordinated reductions by major central banks.
The implied yield on the three-month Euribor contract expiring in March fell to 3.41 percent yesterday, the lowest level in seven months. The yield has been 0.23 percentage point higher than the benchmark rate on average over the past year.
``Concerns over a European economic downturn are intensifying,'' said Ryohei Muramatsu, manager of Group Treasury Asia at Commerzbank AG in Tokyo. ``An ECB rate cut is possible. The euro is becoming a very weak currency.''
The yen rose against the euro and the New Zealand dollar on speculation other central banks will follow the RBA by suggesting they will lower rates, reducing the appeal of so- called carry trades.

Resistance 3: Y104.30
Resistance 2: Y103.60
Resistance 1: Y103.20
Current price: Y101.08
Support 1: Y100.60
Support 2: Y99.20
Support 3: Y98.60
Comments: The yen rose against the dollar on speculation other central banks will follow the RBA by suggesting they will lower rates, reducing the appeal of so- called carry trades. Support is at Y100.60 October 17 low ahead of Y99.30. March lows of Y98.50 looks like stronger support and the main support is back at Y97.90. Still, dollar-yen's daily stochastic is encouraging for bulls to test the 21-day moving average and September lows at Y103.00. If broken Y103.60 September lows to be the next target. Further rise likely to be capped near Y104.10/30 (/50% of entire fall from Aug high at Y110.65 to Y97.91).

USD/CHF techs:
Resistance 3: Chf1.1730
Resistance 2: Chf1.1600
Resistance 1: Chf1.1540
Current price: Chf1.1514
Support 1: Chf1.1400
Support 2: Chf1.1280
Support 3: Chf1.1140

Comments: Dollar keeps positive mood having pierced resent highs in the Chf1.1490/00 area. If the break proves to be sustained the fresh upside push to Chf1.1600 area seems highly probable. The nearest supports are at Chf1.1400 and Chf1.1290/80 zone. The key support remains at Chf1.1140 ( Oct 10, 14 lows) and its break is required to trigger the double-top formation, opening up a potential 250-point correction with the first target near Chf1.1095 (50% Chf1.0702-Chf1.1490).

Resistance 3: $1.7730
Resistance 2: $1.7640
Resistance 1: $1.7510
Current price: $1.7130
Support 1: $1.7000
Support 2: $1.6870
Support 3: $1.6780
Comments: Cable remains under pressure after yesterday's fall from $1.7500/10 upside bound of the triangle formation. Support is session lows zone near $1.7000. Break of the $1.6865/70 zone will open the way to the key level spotted at 10 October low $1.6784.
Above session high $1.7200 and $1.7350, the $1.7500/10 area resistance comes. Stronger one lies at $1.7610/40 (resent highs).

--UK CBI Industrial Trends: Oct Avg. Expected Prices +10% Vs +23% Sep
--UK CBI: Oct Export Orders -32% Vs -25% In Sep
--UK CBI Oct Quarterly Business Optimism -60% Vs -40% July
--UK CBI Quarterly Avg. Expected Dom. Prices Balance +10% Vs +34% July

Resistance 3:$1.3700
Resistance 2: $1.3520
Resistance 1: $1.3350
Current price: $1.3256
Support 1: $1.3210
Support 2: $1.3120
Support 3: $1.3060
Comments: As expected the break of $1.3260/65 ( 13 June 2007, 10 October 2008 lows) zone caused further losses. First downside target under session low $1.3210 spotted at $1.3120 (161.8% of $1.3685-$1.3340 move). Further down there is no decent support to April 2007 low $1.3070/60. Break above session high $1.3350 to target Monday high $1.3520/30 and $1.3690/00 zone.

EUR/USD: $1.3435
USD/JPY: Y100.00, Y102.10, Y102.40/45, Y102.50, Y103.00
AUD/USD $0.7000
NZDUSD $0.6350

Indications suggest that dlr LIBOR will fall a further 14 bps to 3.85%, with the 3-mo euro rates 4 bps lower at 4.96% and sterling 3-month money down 2 bps at 6.085%. Traders say the funds injected by central banks are certainly impacting rates, but settlement dates beyond the year-end are also a big factor.

Japan stocks rose for a second day on speculation corporate profits will beat analyst estimates and after the rout in global equity markets made shares cheap relative to earnings.
Panasonic Corp. jumped 8.9 percent on a report it may beat its profit forecast on higher television sales. JFE Holdings Inc. and Nippon Steel Corp. advanced after the Nikkei newspaper said they may boost their annual targets. Nissan Motor Co., Japan's third-biggest carmaker, gained 8.9 percent after a drop in its stock price drove its dividend yield to five times the return on government bonds, prompting UBS AG to recommend buying the shares.
The Nikkei 225 Stock Average gained 311.77, or 3.6 percent, to close at 9,005.59 in Tokyo. The broader Topix index advanced 33.08, or 3.7 percent, to 927.37. Almost six stocks climbed for each that fell on the Topix.
The Topix lost a fifth of its value in the past month on concern the credit crisis that brought down Bear Stearns Cos. and Lehman Brothers Holdings Inc. would lead to a global recession. The average dividend yield for Topix constituents reached 2.52 percent compared with the 1.57 percent yield on 10-year government bonds, while the gauge's price fell below book value.
The 40 Topix-listed businesses that reported half-year earnings last week posted an average 32 percent gain in profit, according to Bloomberg data, indicating that some companies are weathering the economic slowdown.
Panasonic, the world's largest maker of consumer electronics, jumped 8.9 percent to 1,633 yen. The Osaka-based company may report at least 220 billion yen ($2.16 billion) in operating profit for the six months to Sept. 30, boosted by TV sales, the Nikkei said on Oct. 18. In April, the company forecast first-half profit would decline 9.1 percent to 200 billion yen. Rival Sony Corp. climbed 7.6 percent to 2,625 yen.
JFE, Japan's second-biggest steelmaker, soared 9.2 percent to 2,430 yen, while bigger rival Nippon Steel advanced 4.4 percent to 330 yen. JFE may raise its annual estimate of pretax profit to 510 billion yen from 450 billion yen this month because of falling costs for materials and fuel and higher steel prices, Nikkei said today. Nippon Steel may announce a similar revision on its earnings, the newspaper said.
Nissan, whose dividend yield is 7.6 percent, gained 8.9 percent to 527 yen, while smaller rival Daihatsu Motor Co. advanced 6.5 percent to 961 yen. The companies had their investment ratings boosted to ``buy'' from ``neutral'' by UBS, which cited recent price drops.
Bridgestone Corp., the world's largest tiremaker, jumped 9.5 percent to 1,874 yen, while Toyo Tire & Rubber Co. gained 12 percent to 253 yen. Natural rubber for March delivery traded at 185.20 yen a kilogram today, after falling to as low as 159.3 yen on Oct. 17, the lowest price since July 2005. An index of rubber- product makers had the biggest gain among 33 industry groups on the Topix.

European stocks rose after Ericsson AB reported better-than-estimated earnings, higher oil boosted energy shares and the Netherlands stepped up efforts to ease the financial crisis.
all 18 western European markets advanced. Ericsson, the world's largest maker of wireless phone networks, jumped 16 percent. ING Groep NV rallied 29 percent after receiving a 10 billion-euro ($13.4 billion) lifeline from the Dutch government. Money-market rates declined.
Prudential Plc climbed 19 percent on a report the U.K.'s second-biggest insurer is in advanced talks to sell a stake.
European Central Bank President Jean-Claude Trichet said banks should start lending again after policy makers put them on ``the path'' of recovery.
Speculation that government efforts to shore up banks will bolster the economy and profits helped drag European options lower for a second day. The VStoxx Index, which measures the cost of using options as insurance against declines in the Dow Jones Euro Stoxx 50 Index, dropped 18 percent to 63.28 at 4:51 p.m. in London. The measure reached a peak of 87.88 on Oct. 16.
Ericsson surged 16 percent to 58.40 kronor after reporting third-quarter net income of 2.8 billion Swedish kronor ($380 million) which beat the 2.34 billion-kronor estimate of analysts surveyed by Bloomberg. Citigroup Inc. reiterated its ``buy'' recommendation on the shares with a price estimate of 68 kronor after the report.
ING jumped 29 percent to 9.48 euros, the biggest percentage gain on record. The Dutch government will buy non-voting preferred shares in the financial and insurance company and appoint two representatives to the board of ING, which will scrap this year's final dividend. ING fell a record 27 percent on Oct. 17 after predicting a 500 million-euro loss for the third quarter.
Shell, Europe's largest oil producer, added 11 percent to 1,550 pence, while Total, the region's third-biggest, gained 7.1 percent to 39.025 euros.
Crude oil rose in New York on speculation OPEC will lower output in an attempt to halt a slide in prices, which have fallen more than 50 percent from July's record.
Prudential rose 22 percent to 330.25 pence after the Sunday Times reported the insurer is in advanced talks with investment funds in China and the Middle East to take a 20 percent stake in and help finance a $15 billion offer for the Asian business of American International Group Inc. The newspaper did not say where it got the information.
Societe Generale SA slumped 3 percent to 43.93 euros on speculation France's second-biggest bank may have to raise new capital. Spokeswoman Stephanie Carson-Parker was not immediately available for comment.
European banks led by Deutsche Bank and UniCredit SpA may need to raise a combined 73 billion euros, Merrill Lynch & Co. analysts said in a note today. Societe Generale may have to raise 6.5 billion euros, the analysts said.
Iberia Lineas Aereas de Espana SA, which plans to merge with British Airways Plc, soared by a record 26 percent to 1.77 euros after Spanish newswire Efe said the U.K. carrier's pension deficit won't harm negotiations.
Veolia Environnement SA tumbled 21 percent to 18.43 euros after the world's biggest water company said its water and waste management businesses have slowed, and that it is expects total investments to fall 34 percent to 4 billion euros ($5.4 billion) this year.


Stocks rallied Monday as investors welcomed positive developments in the credit markets and Fed Chairman Bernanke supporting the idea of a second fiscal stimulus package.
In the end, the S&P 500 rallied 4.8%, settling at session highs thanks to a late-session surge in buying interest. Strength was mostly broad-based, with all ten sectors posting a gain. Volume, however, was on the light side with only 1.23 billion shares exchanging hands on the NYSE, compared to the one-year average of 1.49 billion.
During testimony to the House Budget Committee, Fed Chairman Bernanke said he feels the government's recent efforts will help restore the financial system, but cautioned the stabilization of the financial system will not quickly eliminate economic challenges.
Given the likelihood of a weak economy for several quarters, Bernanke said it would be appropriate for Congress to consider a second fiscal stimulus. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, businesses and other borrowers and limit long-term effects on the government's budget deficit.
Meanwhile, overseas governments took more actions to help alleviate the financial market turmoil. India cut its key lending rate for the first time since 2004, South Korea said it will guarantee some of the foreign debt held by its banks, and the Netherlands is injecting approximately $13 billion in ING (ING 12.93, +2.28).
Credit markets continue to show improvements. Short-term interbank lending in dollars, measured by Libor, declined across all terms. The difference between what banks pay each other for three-month loans and what the government pays, known as the TED spread, declined 65 basis points to 2.96%. The TED spread is well off its 4.34% high reached on Oct. 10, but levels remain substantially above the historical average of roughly 0.4%.
In corporate news, utility company Exelon (EXC 54.58, +0.08) made an unsolicited proposal to acquire NRG Energy (NRG 25.00, +5.67) for $26.43 per share, or $6.2 billion, in stock. The offer represents a 37% premium to Friday's closing level. The utilities sector as a whole climbed 8.1%.
Eaton (ETN 45.05, +0.63), Halliburton (HAL 20.80, +2.54), and Hasbro (HAS 28.79, -1.33) topped estimates for their respective latest quarters. On the negative side, Novartis AG (NVS 52.16, +1.22) and Mattel (MAT 14.07, -0.38) reported earnings that fell short of expectations.
The better-than-expected results from Halliburton, and a 3.8% gain in oil prices, helped the energy sector spike 11.2%.
The financial sector (+2.8%) underperformed on a relative basis, with notable weakness in retail (-3.4%) and industrial (-2.1%) REITs.
In economic news, September leading indicators rose 0.3%, although August's decline of 0.5% was widened to 0.9%. Economists had forecast a drop of 0.1% in September. The leading indicators report is mostly a collection of previously announced economic indicators.

The move is looking like a pressured one to take out a barrier at the figure (considering who was reportedly buying ahead). Expect profit take demand to emerge to stall follow through sales, but underlying tone said to remain heavy. Next bid/support level seen at $1.7070, with bid interest said to extend to $1.7050.

Resistance 3: Y104.30
Resistance 2: Y103.60
Resistance 1: Y103.20
Current price: Y101.08
Support 1: Y100.60
Support 2: Y99.20
Support 3: Y98.60
Comments: The yen rose against the dollar on speculation other central banks will follow the RBA by suggesting they will lower rates, reducing the appeal of so- called carry trades. Support is at Y100.60 October 17 low ahead of Y99.30. March lows of Y98.50 looks like stronger support and the main support is back at Y97.90. Still, dollar-yen's daily stochastic is encouraging for bulls to test the 21-day moving average and September lows at Y103.00. If broken Y103.60 September lows to be the next target. Further rise likely to be capped near Y104.10/30 (/50% of entire fall from Aug high at Y110.65 to Y97.91).

Resistance 3: Chf1.1730
Resistance 2: Chf1.1600
Resistance 1: Chf1.1540
Current price: Chf1.1514
Support 1: Chf1.1280
Support 2: Chf1.1140
Support 3: Chf1.1090
Comments: Dollar keeps positive mood having pierced resent highs in the Chf1.1490/00 area. If the break proves to be sustained the fresh upside impetus to Chf1.1600 area is likely. The nearest supports are at Chf1,1400 and Chf1,1290/80 zone. The key support remains at Chf1.1140 ( Oct 10, 14 lows) and its break is required to trigger the double-top formation, opening up a potential 250-point correction with the first target near Chf1.1095 (50% Chf1.0702-Chf1.1490).

Resistance 3: $1.7730
Resistance 2: $1.7640
Resistance 1: $1.7510
Current price: $1.7130
Support 1: $1.7110
Support 2: $1.7050
Support 3: $1.6870
Comments: Cable remains under pressure after yesterday's fall from $1.7500/10 upside bound of the triangle formation. Support is hourly lows zone $1.7110/20 (Monday's session low). $1.7050/40 comes further down. Break of the $1.6865/70 zone will open the way to the key level spotted at 10 October low $1.6784.
Back above $1.7500/10 resistance comes at $1.7610/40 (resent highs). Higher the bulls may push to test the 50% retracement level and 21-DMA at $1.7700/34.

Resistance 3:$1.3770
Resistance 2: $1.3690
Resistance 1: $1.3530
Current price: $1.3258
Support 1: $1.3260
Support 2: $1.3120
Support 3: $1.3060

Comments: The dollar advanced for a fifth day against the euro and reached near an 18-month high against the common currency after Federal Reserve Chairman Ben S.Bernanke called for further government stimulus measures to avert a prolonged recession and the White House said it may back such measures, having previously withheld support for additions to a $168 billion package approved in February.
This shows that U.S. officials are prepared to go far to limit damage to the economy. Sustained break of $1.3260/65 ( 13 June 2007, 10 October 2008 lows) zone will signal further losses. First downside target spotted at $1.3120 (161.8% of $1.3685-$1.3340 move). Further down there is no decent support to April 2007 low $1.3070/60.
Break above $1.3520/40 to target $1.3690/00 zone and may led to retest of October 9 high $1.3780. The key upside Fibonacci target is $1.3900/20 (Sept 11 low, neckline of head and shoulders reversal pattern and 21-DMA at $1.3920). If pierced, the $1.3990 (38.2% of $1.4860 to $1.3444) and $1.4060 (23.6% of $1.6039 to $1.3444) to be the next upside targets.

Optimism is building on the late gains in the US and strength in Asia. UK spreadbetters Cantor Index are calling the FTSE up 68, the DAX up 89, the CAC up 67 and the Eurostoxx 50 up 53.

High Low Close
EUR/USD 1.3529 1.3284 1.3329
USD/JPY 102.40 101.37 102.10
GBP/USD 1.7518 1.7102 1.7316
USD/CHF 1.1523 1.1322 1.1505

EUR/JPY 138.53 134.79 136.13
EUR/GBP 0.7782 0.7689 0.7769
GBP/JPY 179.18 173.59 175.17
GBP/CHF 1.9901 1.9627 1.9729

Change % Change Last
Nikkei +311.77 +3.6% 9,005.59
Topix +33.08 +3.7% 927.37
FTSE +219.66 +5.41% 4,282.67
DAX +53.68 +1.12% 4,835.01
CAC +118.59 +3.56% 3,448.51
Dow +411.46 +4.65% 9,265.43
NASDAQ +58.74 +3.43% 1,770.03
S&P +44.85 +4.77% 985.40
10yr Note -0.5000 -0.127% 3.886%
NYMEX Crude Oil +2.40 +3.34% 74.25
Gold +2.30 +0.29% 790.00

00:30 Australia RBA Meeting's Minutes (Oct)
10:00 UK CBI industrial order books balance (October) -26,0%
13:00 Canada BoC Interest Rate Decision 2,50% 2,50%
23:50 Japan All industry index (August) 0.8%