CONTINENT: Euro gains as US, Japan and UK print money, ECB refrains.

QUOTE: It is better to spend money like there's no tomorrow than to spend tonight like there's no money.
MARKET PULSE

  • Deputy Governor Iwata reiterated the Bank of Japan's commitment to easing.
  • US : 16-day government shutdown took at least $24 billion out of the economy.
  • BOJ to continue buying more than $71.7 billion in government bonds/month to end deflation.
  • Forecast: Yen will finish 2013 at 100 per dollar, and then reach 110 at the end of 2014.
  • BoE Chief Economist Spencer Dale said it was "unlikely" to raise interest rates before 2015.
  • Consumer confidence in France probably rose to an eight-month high in October.
  • Forecast: French gauge rose to 86 this month, matching the level reached in February.
  • Forecast: China PMI rose to 51.2 in October.
  • Yen Weakens Versus Euro After BOJ's Iwata Repeats Easing Pledge.
  • RBI: Rajan Seen Raising Key Rate Again to Tame Fastest Asia Inflation.
  • Citigroup Currency Staff Work Into Night in London on Dodd-Frank .
  • Yuan Trades Near 20-Year High on Bets PBOC Allowing More Gains.


COMMODITIES

  • WTI Crude Fluctuates Before U.S. Industrial Production Data
  • Russia Cuts Gold Assets for First Time in a Year as Prices Drop
  • Gold Fluctuates Near Five-Week High Before Fed Policy Meeting
  • Copper Declines Before U.S. Output Data as China Credit Tightens
INDIAN INR
MARKETS
India's rupee swung between gains and losses. The rupee traded little changed at 61.48, compared with 61.46 on Oct. 25. It rose and fell as much as 0.1 %. 1-month volatility climbed eight basis points to 11.76 %. The currency strengthened 1.8 % this month. 3-month forwards rose 0.2 % to 62.86. Offshore non- deliverable contracts were steady at 62.94. FACTORS

  • Central bank will have its monetary policy meeting tomorrow.
  • Central bank will raise the benchmark repurchase rate to 7.75 % from 7.50 %.
  • Federal Open Market Committee starts a 2-day meeting tomorrow.
  • US : 16-day government shutdown took at least $24 billion out of the economy.


FOREIGN EXCHANGE
MARKETS
The yen extended its 3-week decline against the euro. The yen declined 0.2 % to 134.76 per euro from Oct. 25, extending a 0.5 % drop from last week. It fell 0.2 % to 97.60 per dollar. Euro was little changed at $1.3807, after reaching $1.3832 on Oct. 25, the strongest since November 2011. The euro bought 85.332 pence from 85.395, after touching 85.553 on Oct. 24, the highest since Aug. 29. The Aussie rose 0.3 % to 96.08 U.S. cents. FACTORS

  • Deputy Governor Iwata reiterated the Bank of Japan's commitment to easing.
  • BOJ to continue buying more than $71.7 billion in government bonds/month to end deflation.
  • FORECAST: Yen will finish 2013 at 100 per dollar, and then reach 110 at the end of 2014.
  • BoE Chief Economist Spencer Dale said it was "unlikely" to raise interest rates before 2015.
  • Consumer confidence in France probably rose to an eight-month high in October.
  • Forecast: French gauge rose to 86 this month, matching the level reached in February.
  • Forecast: China PMI rose to 51.2 in October.