Forex News – 2nd November 2011

The FX traders seem to be living the moment.

Last week as a deal was struck to assist Greece EUR gained few big figures against USD

and other currencies. Although implanting those new measures is a different story the

market didn’t really seem to care.

Now that Greece PM admits those measures are tough and calls for referendum the euro

crushed, taking the leading indices down with it.

All of the sudden EUR is gaining back as the Fed due to lower growth projections in today’s

rate announcement (16:30 GMT) and a press conference at 18:15 GMT.

This Thursday there is a chance of a -25bps rate cut from The ECB which is not priced in by

the market. Such a move, should it occur, will send the EUR/USD to revisit its weekly low’s.


Gold has always been attractive at times of uncertainty. Despite heavy sell-off due to

Head-And-Shoulders the metal managed to recover and seems to be poised for further gains

ahead of the FOMC Statement.

Key Level for gold is $1,730.00 where a break above may take the metal to $1,750, possibly

$1,800 within a matter of a days.

Gains in gold greatly depend on further QE or hints of QE in FOMC Statement or the press

conference that is due to take place later on in today’s session.

The publication cannot be distributed, copied and/or make any other usage without Bloombex Ltd.
Consent and written approval.
Although the data has been collected from reliable sources Bloombex does not vouch its accuracy
or precision. The quotes mentioned are for indication only, the implied conditions will only be the concluded
conditions when executing the trade.
The review is presented for instructive purposes in condition it will not be the key factor for trading.
The contents of this publication should not be construed as an express or implied promise, guarantee
Or implication by Bloombex.

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