FX Weekly: 4th October 2010

 The US Dollar recorded its worst monthly performance in two decades alongside immensely strong equities – recording their strongest monthly performance in over half a century

 Gold prices continued to set new records – last week’s all time high stands at $1,320. Gold prices have set a lifetime record in each of the past 3 weeks

 Chinese pledge to buy Greek bonds has helped to narrow Greek-German bond yield spreads. Positive sentiment likely to aid the broader issue of peripheral funding in Europe

 Peripheral European debt is still on the radar for most investors and remains an active theme - but the resulting negative weight on EUR pairs is diminishing




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