Physical Agent’s Rage In America Does Not Help European Political Activity - 29.10.2012

The Sandy hurricane coming over America caused sales in securities of European insurance companies. Moreover, investors’ sentiment is pressured by uncertainty regarding the first tranche of financial aid to Greece that is required to be transferred till the middle of November in order to avoid default. International donors refused to make new concessions to the package of austerity measures, that made the negotiations stuck again. Meanwhile, Spanish government keeps the financial aid application delayed. This uncertainty also reflects negatively in European assets value. Against this, the single currency quotes today are near 2-weeks lows near 1.2880. The nearest important support is at 1.2835 where 200-daily average is. Personal spending/income data in the U.S. came out in different directions: spending rose in September to 0.8% (m / m) vs. expectations of 0.6%, while income increased by 0.4%, less than the forecast (0.5%). The data had no significant market reaction. Short–termly, it is worthy to pay attention to USD/JPY traded at support level (see the chart)

USD/JPY, 30-minutes chart