The equity market is still suffering from the investors selling pressure taking profits after better than expected earning reports of the third quarter specially after the weak US broad consuming confidence figure release of October which came down again to 47.7 from 53.1 and it was expected to be 54.3 which can underpin the greenback and persisting of the risk aversion sentiment. Dow was struggling to get above 10000 psycological level again while the greenback has found support across the broad inthese recent few days on the persisting of this risk apitite aversion sentiment which contian the market currently.

The single currency have fallen from 1.50 level yesterday versus the greenback and the Brritish pount which was depressed by the dispointing release of UK Q3 GDP could find support at 1.625 in the beginning of this week but it is still unable to find a sustainable place above 1.64 versus the greenback in spite of today better than expected UK CBI retail sales of October  which came at 8 while the market was waiting for just 5 from just 3 in September.

these data come today after an unchanged retail sales rate of September from August while the market was waiting for a rising by .5% m/m which can show an improving in October but the the market waiting for further quatitive easing steps from the BOE next week is still weighing on the sterling as the figures of the third quarter have shown that the UK economy has not yet got out of the recesioin. Gordon Brown has tried in the weekend to calm down the markets expecting positive rate of growth in the fourth quarter of this year after the -.4% of third quarter which has driven the cable down from above 1.66 before the data to dovish opening this week testing 1.625 area which is mostly to be tested again by god's will on the pressure of weak US broad consuming confidence figure of October.

God Willing, it is still important this week to wait for the release of US Q3 advanced reading which is expected to be  up yearly by 3.1% and by the end of this week US Chicago PMI of October which is expected to be again below 50 in the contracting teritory at 49.1 from 46.1 in September.

Best wishes

FX Consultant
Walid Salah El Din
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