USD Trading Outlook: New York Open for October 15, 2008 The focus of forex trading remains on the performance of equity markets as the primary indicator of confidence in the global economy. The JPY is driven by stocks an so is the EUR/JPY. The EUR/USD is thus driven by the JPY. All markets are waiting for the LIBOR lending to loosen up. It is said that banks are still waiting for rhe various bailout provisions to be IMPLEMENTED before they start to accept counterparty risks again. This could be a slow process. The details of the U.S. bailout package yesterday held no major surprises as most had been leaked in advance. U.S. equities eased on a “sell the fact” reaction to the news. The USD is opening higher vs. the EUR and CHF. The GBP is higher. As noted, the JPY has gained on weaker European equities. Crude oil prices are lower. Gold is up. The commodity currencies (AUD, CAD and NZD) are mixed. The AUD is trading a wide range and is weaker along with the kiwi. The CAD is up modestly. Canadian PM Harper will return to office with more seats in Parliament, though still not a majority, after winning Tuesday's election.. Eurozone bonds are better. The Nikkei gained and 10-yr JGBs fell. U.S. bond prices have improved. U.S. shares look like they wil be opening weaker later. ]Risk Warning: Foreign exchange trading and investment in derivatives can be very speculative and may result in losses as well as profits. Foreign exchange and derivatives trading is not suitable for many members of the public and only risk capital should be applied. The website does not take into account special investment goals, the financial situation or specific requirements of individual users. You should carefully consider your financial situation and consult your financial advisors as to the suitability to your situation prior to making any investment or entering into any transactions.

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