Euro steady at 1.3910 in early Europe before EU summit - 26th October, Currency Market Update

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by: fxsolutions
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Date: Sat, 5 Nov 2011 Time: 1:19 AM
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Join Chris Advincula, Market Analyst at leading Forex trading broker FX Solutions (http://www.fxsolutions.com/), as he provides a report of Forex activity and news for 26th October 2011, including a rebound for Euro-Yen.

"The euro is steady at the 1.3900 level with some bias to the 1.3880 support line, however it is confined to a lackluster 45-pip range as the market participants stay on the sideline awaiting the news results of the EU summit.

German Chancellor Angela Merkel is due to address the German Bundestag lower-house lawmakers around 2100 GMT. There is a chance it may be earlier at 11:00 GMT today). She will speak for about 20 minutes. Thereafter, the lower-house will debate for 90 minutes over the EFSF budget. Merkel needs to win the vote in the Bundestag to have a mandate to negotiate a deal with the other EU leaders in Brussels aimed at delivering a range of measures.

The Merkel pary holds 330 seats in the 620-member Bundestag, allowing her to pass legislation with a simple majority of 311 votes with as many as 19 coalition dissenters.

The EU summit in Brussels topics include, increasing the European Financial Stability 440 billion euro rescue fund, recapitalizing distressed EU member banks and defining amounts of writedowns on Greek debts. Luxembourg's Juncker said yesterday that they are currently debating 50-60% on the Greek debt write-down, meaning they will be asking the Greek bondholders to accept losses on the bonds by rolling over the maturities or extending the term.

Asian stocks fell, snapping a three-day decline rally, as uncertainty grew over the progress of the EU talks. Japanese stocks fell for a second day. Nikkei slid 0.6% to 8,705.82 at 11:00am in Tokyo. Topix fell 0.7% to 742.68.

Gold is on the firm side at 1714.90 (+$21.00) being one of the safe haven tools once again fronting the uncertainty of the financial markets. High 1716.00 Low 1695.00.

The 30-day simple moving average is consolidating between 1.3925 and 1.3900."

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