Good morning. The euphoria over Wednesday\u2019s EU deal didn\u2019t last long as the soaring yield on Italy\u2019s bond auction proved that the market remains skeptical about the success of the latest deal. The focus will remain over the rate decisions of the European Central Bank and the Bank of England. There is every possibility of the region witnessing a double-dip recession if rates are hiked. The \u2018flash\u2019 October CPI data is expected from Europe today.<\/p>\n
On a positive note, both Japan and Russia have expressed readiness to help Europe to expand the EFSF fund. A top Russian economic adviser – Arkady Dvorkovich said: \u201cThere have been no formal requests from the European Union but if they make such a request \u2026 the Finance Ministry, the central bank, the government … will seriously consider it as well as the possibility of support.\u201d Russia has already held consultations with other emerging countries on aiding the euro-zone and could invest up to $10 billion through the International Monetary Fund, said the adviser close to Kremlin.<\/p>\n
Klaus Regling \u2013 the head of Europe\u2019s bailout fund now touring Asia over possible Asian participation in the EFSF expansion, told reporters that Japan\u2019s top currency official has assured him of continued support. \u201cThe Japanese government will continue to buy the EFSF bonds that we have been issuing over the last 10 months and we will continue to be in contact about future operations,\u201d Regling said. Japanese Yen lost about 4% after the overnight intervention by the authorities to give some relief to the country\u2019s struggling exporters.<\/p>\n
GBP\/EURO \u2013 1.1428
\nGBP\/US$ \u2013 1.6022
\nGBP\/CHF \u2013 1.3948
\nGBP\/CAN$ – 1.6012
\nGBP\/AUS$ \u2013 1.5181
\nGBP\/ZAR \u2013 12.5240
\nGBP\/JPY \u2013 126.68
\nGBP\/HKD \u2013 12.4589
\nGBP\/NZD \u2013 1.9714
\nGBP\/SEK \u2013 10.3292<\/p>\n