The USD extended gains against the EUR to fresh lows despite the latest string of US data coming in relatively weak. Opening at 1.1008 the pair dropped gradually throughout the day to hit a low of 1.0934. This morning we see the pair open at 1.0928 US factory orders fell 1.0% in September against an expected decrease of 0.8%. Further data showed IBD/TIPP economic optimism index fell to 45.5 from an estimate of 47.5 but failed to dampen the strength of the USD. During an overnight speech Mario Draghi confirmed that the ECB will examine the need for further QE in December pushing for a further sell off in the shared currency. This was largely unaffected by the release of PMI’s across Europe this morning EUR continuing to lose strength. Also in the euro zone, figures realised early in the morning showed that the number of unemployed people in Spain rose by 82.300 in October, more than the expected 70.300 rise also after an increase of 26.100 the previous month. In a highly anticipated move, the RBA left its benchmark interest rate unchanged at 2.0% on Tuesday suggesting the economy is holding in well despite the commodity downturn. Speaking after the decision, RBA Governor Glenn Stevens says that "the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.� GBP/AUD opens at 2.1395, a one week high after release of upbeat economic reports early this morning. The NZD was the weakest performer among the main currencies during the overnight session, hit by depreciating dairy prices at the Global Dairy Trade auction. GBP/NZD currently trades at 2.3187 UK News The pound remained relatively unchanged against the dollar yesterday after data showing that the U.K. construction sector posted another month of solid growth in October. Construction PMI came out at 58.8 last month from 59.9 in September, matching economists’ forecasts. Cable opened markets at 1.5419 but took a dip during the afternoon to hit lows of 1.5358 shortly before recovering over 1.5400 by end of trade. Markets open this morning at 1.5427. Opening at 1.4001 GBP/EUR managed to sustain its level above the 1.40 later spiking to the high of the day at 1.4072. This morning we see continued Euro weakness with the pair opening at 1.4119 as traders anticipated the release of further comments from Mario Draghi. The Bank of England is due to have its monetary policy meeting on Thursday, but is predominantly expected to keep rates unchanged this month. Attention will hence be directed towards the quarterly inflation report, and the following minutes of the meeting. UK services sector data just released has come in better than expected. A score of 54.9 points was recorded in October, slightly better than the 54.6 reading that was forecasted. GBP/USD rises to 1.5430, acknowledging the improvement but not going wild.

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