Market Update

USD still weaker on back of concerns of a slump in the Housing market and the Durables Goods Orders today. EURUSD broke 1.3200 this morning. \

Fixed Income and FX remains exremely range bound despite yesterday’s solid reversal in the bunds.

Tomorrow will be the trend-setter for the USD as GDP and Core PCE figures should confirm whether or not the so-called rumours are right.

Four down days in a row now but more importantly US Financial sector has broken trend line from June ’06. This could easily spill over into indices.

Higher than expected PCE should kill the bull channel for good.

Gold close to nine-month highs.