EUR/USD

The US presidential election has contained the market sentiment but
now it is the wide trade deficit in US and Bush`s inability to contain
it and the high oil prices and the concerns on growth in US after the
weaker than expected Q3 GDP first reading which has come at 3.7% lower
than the market was expected it at 4.3%. The pair is still on its
uptrend persistence and supported above 1.272. The ECB has just shown
its concern on the high oil prices and its impact on the growth in EU
and its impact on the inflation outlook. We see that they welcome the
strong EURO at the ECB. It is now the US non-farm payroll by the end
of the week. The next resistance should be at 1.288 then it is 1.2935.
Please try to wait for October US labor report by the end of the week.


USD/CHF

As we have expected earlier that we are to see USD decline on Bush`s
victory as this can carry further geopolitical concerns and
probabilities of new conflicts may be in Syria next time. This can be
a threat to USD over the long run. We are still expecting further
threats to the oil pipelines in IRAQ can help the oil prices and CHF
weakening the USD. The pair is already trading right now at 8-year
high at 1.1889. Please try to wait for October US labor report by the
end of the week.


GBP/USD

GBP is still lagging behind the other European currencies in their
advance against USD on the recent weak housing prices which has been
slowed to -.4% last month and the inflation forces in UK as CPI of Sep
came at 1.1% and it was 1.3% august surprising and below market
expectations . It was obvious to the market that there is no more rate
hike today and it looks that it has reached it is peak this year. This
current seen dovish interest rate outlook can put weights on GBP
across the broad generally on the coming days and may be weeks!


USD/JPY

JPY is still looking for lower oil prices and with any oil prices
decline we see a rising of the yen at this current high oil prices
levels. The pair is expected to be supported by the official`s
currency talking down below 106 levels but the current growing
expectations that we can see CPI rates above zero soon in Japan can
help ending a long period of a nearly zero interest rate and JPY as
well. Please try to wait for October US labor report by the end of the
week.


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