FX Weekly: 25th October 2010

 PBoC rate hike spooked the ongoing risk rally, but only temporarily.

 USD recovered some ground alongside a wave of profit taking in Gold

 European PMI’s show a continued loss of momentum in European sentiment

 Spending review in the UK was in line with expectations but still managed to help Sterling pairs and ensured confidence in the coalition government was kept. Higher than expected government borrowing figures underline the importance of remaining cautious

 G20 meetings prove largely uneventful




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