The euro is moderately lower against the U.S. dollar after the release of mixed U.S. data . As recent data , which were presented by the Federal Reserve , at the end of last month, the volume of industrial production in the U.S. has grown significantly , thereby exceeded the average forecasts of experts. According to the report , in September, the volume of industrial production increased by a seasonally adjusted 0.6 % compared with August , while capacity utilization rose by 0.4 percentage points - to the level of 78.3 %. Add that to the experts on industrial production would grow by 0.4 % and capacity utilization - to 78.1 %. Note that the gain in September , industrial production rose back to the average of 2007, which is fixed for the first time since the recession. Also, the data showed that the growth rate for August remained unedited - at the level of 0.4 %. The Federal Reserve also reported that the production in the manufacturing sector , which is the largest component of industrial production, increased in September by 0.1 %, which was followed , after rising 0.5 % in August. Output in the utility sector , meanwhile, grew by 4.4 % during the month, after declining in the previous five months.

Another report showed that the number of Americans who signed contracts to buy housing, dropped sharply in September , registering with the fourth monthly decline in a row, which was mainly due to an increase in interest rates on mortgages and fiscal uncertainty. The National Association of Realtors reported that the index, which measures the number of pending home sales in the secondary market , fell by a seasonally adjusted 5.6% compared to August , reaching at the same annual rate of 101.6 , the lowest level since December 2012 . We add that, given the recent deterioration in the figure was 1.2% lower than in September 2012 . It was the first time in more than two years, the number of pending home sales were lower than a year earlier. Note that according to the average forecast of experts , the index should have grown by 0.5 % , after falling 1.6 % in August.

We add that the markets are also waiting for the meeting of the Operations Committee on the Federal Open Market on Wednesday in hopes of getting guidance on the timing of folding. Experts point out that the Federal Reserve is likely to repeat that it is not willing to reduce the amount of bond buying program and will wait for more evidence that the economy is strong enough to cope with the reduction incentives. The vast majority of analysts agree that the central bank will continue the program of asset purchases , which is $ 85 billion a month after the end of the two-day meeting on Tuesday and Wednesday . In the accompanying statement , the central bank is likely to confirm the possibility of folding the program purchases until the end of the year. In recent days, many well-known economists have revised their expectations about the first reduction in the QE March 2014 .

The pound fell against the dollar, losing the position of all previously earned .

Earlier, the strengthening of the British currency was due to the release of the report from Hometrack, which showed that the average price in the sale of housing in the UK continued to rise in October, which was due to increased demand among buyers. However, the number of proposed homes for sale declined, raising questions about the health of the housing market. According to the report , the average asking price for a house in the UK rose by 0.5 % in October compared with the previous month , when prices rose at the same pace . This marks the ninth consecutive monthly increase in prices . On an annual basis , house prices rose in October by 3.1 %, compared with an increase of 2.4 % in the previous month.

Add that after the publication of GDP data for the UK next major event for the pair will be meeting FOMC, although the markets and predict that Bernanke will be neutral tone . Tomorrow Britain will publish reports on the money supply , loan approvals for mortgages , consumer loans , and in the second half of the week - the data on potrebdoveriyu Gfk, Nationwide house prices and PMI Markit.

European stocks declined, snapping a three-week rally for the Stoxx Europe 600 Index, as U.S. factory production and home sales missed economists’ forecasts.

Fewer Americans than forecast signed contracts to buy previously owned homes in September as rising mortgage rates slowed momentum in the housing market. The index of pending home sales slumped 5.6 percent, exceeding all estimates in a survey of economists and the biggest drop in more than three years, the National Association of Realtors reported.

Members of the Federal Open Market Committee are scheduled to meet Oct. 29-30, when they will consider scaling back asset purchases that have helped the Stoxx 600 more than double since March 2009. Policy makers will wait until March before starting to taper the $85 billion of monthly bond purchases, a Bloomberg survey showed this month.

Fiat retreated 3.2 percent to 5.74 euros as a gauge of carmakers fell the most among the 19 industry groups in the Stoxx 600. PSA Peugeot Citroen sank 5.8 percent to 9.38 euros, the lowest level since July.

Bayerische Motoren Werke AG, the world’s biggest luxury-car maker, declined 1.5 percent to 82.39 euros and Volkswagen AG, Europe’s largest carmaker, slipped 1.3 percent to 174.25 euros.

JPMorgan downgraded automakers to neutral from overweight, meaning investors should no longer hold more of the shares than are represented in regional benchmarks.

Volvo dropped 4.3 percent to 84.30 kronor as Natixis cut its rating on the truck maker to neutral from buy. The shares tumbled 6.6 percent on Oct. 25 after the company reported a surprise drop in operating profit.

TNT Express climbed 4.3 percent to 7.09 euros even after the package-delivery company reported a decline in sales and operating income. The company said it will step up restructuring efforts, without providing further details.

Mediobanca advanced 3.3 percent to 6.54 euros after fiscal first-quarter profit climbed 57 percent at Italy’s biggest publicly traded investment bank. Net income rose to 171.2 million euros in the three months ended Sept. 30 from 109 million euros a year earlier, including a 58.8 million-euro gain from the sale of part of its holding in Telco SpA.

Aggreko Plc, the world’s largest provider of mobile power generators, rallied 6 percent to 1,608 pence after saying “underlying” revenue and trading margins were “slightly ahead of last year” in the third quarter.

Oil rose for a third day in New York as Libyan output fell and on speculation that the U.S. Federal Reserve will maintain the pace of stimulus. Brent oil headed for the biggest gain in more than two weeks.

West Texas Intermediate advanced as much as 1 percent after state-run National Oil Corp. said crude production in Libya, holder of Africa’s largest reserves, declined to about 250,000 barrels a day because of labor protests. The Federal Open Market Committee, starting a two-day meeting tomorrow, is likely to delay reducing, or “tapering,” monthly bond purchases until March, according to a Bloomberg survey of economists. Brent rose as much as 2.2 percent.

WTI for December delivery gained 59 cents, or 0.6 percent, to $98.44 a barrel at 11:34 a.m. on the New York Mercantile Exchange. Futures touched $95.95 Oct. 24, the lowest intraday level since June 27. The volume of all futures traded was 27 percent below the 100-day average.

Brent oil for December settlement rose $2.09, or 2 percent, to $109.02 a barrel on the London-based ICE Futures Europe exchange. Volume was 4.5 percent higher than the 100-day average. The European benchmark crude traded at a $10.58 premium to WTI, up from $9.08 on Oct. 25. The spread widened to $13.37 on Oct. 23, the most in six months on an intraday basis.

Gold prices rose to a five-week high as traders expect the Fed maintaining stimulus measures at a meeting this week.

From the beginning, gold fell by nearly 20 percent, as investors prefer higher yielding stocks and fear that the precious metal will lose appeal as a hedge against inflation , if the Fed will reduce the incentive program . Over the last two weeks gold rose by 6 per cent as the weak U.S. economic indicators may keep the Fed from cutting incentives. The Central Bank will hold a monthly meeting on Tuesday and Wednesday.

Traders are also watching demand in the physical market of Asia, where consumption fell after a sharp rise at the beginning of the year.

Premiums in India last week rose to a record $ 130 per ounce to the price in London , as the government imposed restrictions on the import of gold caused the deficit on the eve of the holiday season in early November.

Surcharges on the Shanghai Gold Exchange in relation to London prices turned negative on Monday , and then went up to $ 1 per ounce , compared with $ 30 in April and May.

The cost of the December gold futures on COMEX today rose to $ 1361.80 per ounce.

USD/JPY Y97.00 Y97.20 Y97.25 Y97.50 Y98.00 Y98.20 Y98.75

EUR/USD $1.3700 $1.3765 $1.3780 $1.3805

USD/CHF Chf0.8950 Chf0.9000 Chf0.9030

AUD/USD $0.9600 $0.9645 $0.9665

USD/CAD C$1.0350 C$1.0450

NZD/USD $0.8395

EUR/GBP £0.8500

EUR/CHF Chf1.2325

Upgrades:

Downgrades:

Boeing (BA) downgraded to Neutral from Buy at Buckingham Research

Other:

Data

11:00 UK Retail sales according to the Confederation of British Industry 34 October 33

13:00 UK Speech bank of England chief economist Spencer Dale

The dollar rose against the euro as investors are awaiting U.S. data on industrial production pending transactions for the sale of housing. We add that the markets are also waiting for the meeting of the Operations Committee on the Federal Open Market on Wednesday in hopes of getting guidance on the timing of folding. Experts point out that the Federal Reserve is likely to repeat that it is not willing to reduce the amount of bond buying program and will wait for more evidence that the economy is strong enough to cope with the reduction incentives. The vast majority of analysts agree that the central bank will continue the program of asset purchases , which is $ 85 billion a month after the end of the two-day meeting on Tuesday and Wednesday . In the accompanying statement , the central bank is likely to confirm the possibility of folding the program purchases until the end of the year. In recent days, many well-known economists have revised their expectations about the first reduction in the QE March 2014 .

The pound fell against the dollar, losing the position of all previously earned. Earlier, the strengthening of the British currency was due to the release of the report from Hometrack, which showed that the average price in the sale of housing in the UK continued to rise in October, which was due to increased demand among buyers. However, the number of proposed homes for sale declined, raising questions about the health of the housing market. According to the report , the average asking price for a house in the UK rose by 0.5 % in October compared with the previous month , when prices rose at the same pace . This marks the ninth consecutive monthly increase in prices . On an annual basis , house prices rose in October by 3.1 %, compared with an increase of 2.4 % in the previous month.

Add that after the publication of GDP data for the UK next major event for the pair will be meeting FOMC, although the markets and predict that Bernanke will be neutral tone . Tomorrow Britain will publish reports on the money supply , loan approvals for mortgages , consumer loans , and in the second half of the week - the data on potrebdoveriyu Gfk, Nationwide house prices and PMI Markit.

EUR / USD: during the European session, the pair fell to $ 1.3780

GBP / USD: during the European session, the pair fell to $ 1.6155

USD / JPY: during the European session, the pair rose to Y97.71

At 13:15 GMT the United States will present capacity utilization for September, and will report on changes in the volume of industrial production in September. At 14:00 GMT the United States will announce the change in the volume of outstanding home sales for September. At 23:30 GMT Japan will release data on changes in the level of household spending and changes in retail sales for September.

EUR/USD

Offers $1.3870/80, $1.3850/55, $1.3845/50, $1.3830/35, $1.3825

Bids $1.3765/60, $1.3750/40, $1.3720, $1.3710/00

GBP/USD

Offers $1.6320/30, $1.6300, $1.6280, $1.6250/60

Bids $1.6165/60, $1.6115/00, $1.6080

AUD/USD

Offers $0.9720/25, $0.9690/00, $0.9670/75, $0.9645/50, $0.9620/25

Bids $0.9585/80, $0.9560/50, $0.9500, $0.9480

EUR/GBP

Offers stg0.8650, stg0.8600, stg0.8555/65, stg0.8536

Bids stg0.8505/00, stg0.8470, stg0.8450/40, stg0.8425/15, stg0.8400

EUR/JPY

Offers Y135.80, Y135.50, Y135.25/30, Y135.00

Bids Y134.20, Y134.00, Y133.55/50

USD/JPY

Offers Y98.80, Y98.50, Y98.20, Y98.00, Y97.75/80

Bids Y97.20, Y97.00, Y96.80

European stocks were little changed after a three-week rally as investors awaited U.S. data on industrial production and housing for signs of the health of the world’s largest economy. U.S. futures and Asian shares rose.

The Stoxx Europe 600 Index slipped 0.1 percent to 319.81 at 11 a.m. in London, erasing an earlier gain of 0.3 percent. The benchmark gauge rose 0.5 percent last week as disappointing U.S. jobs data fueled bets the Federal Reserve will maintain its stimulus measures until at least March. The index has soared 14 percent in 2013, closing at a five-year high on Oct. 22.

Reports today may show U.S. industrial production rose 0.4 percent in September, while pending home sales were little changed, according to economists surveyed.

Members of the Federal Open Market Committee are scheduled to meet Oct. 29-30, when they will consider scaling back asset purchases that have helped the Stoxx 600 more than double since March 2009. Policy makers will wait until March before starting to taper the $85 billion of monthly bond purchases, a Bloomberg survey showed this month.

TNT Express (TNTE) climbed 3.9 percent to 7.07 euros even after the package-delivery company reported a decline in sales and operating income. The company said it will step up restructuring efforts, without providing further details.

Aggreko Plc, the world’s largest provider of mobile power generators, rose 3.5 percent to 1,570 pence after saying “underlying” revenue and trading ">Mediobanca SpA (MB) climbed 3.2 percent to 6.53 euros after fiscal first-quarter profit climbed 57 percent at Italy’s biggest publicly traded investment bank. Net income rose to 171.2 million euros in the three months ended Sept. 30 from 109 million euros a year earlier, including a 58.8 million-euro gain from the sale of part of its holding in Telco SpA.

FTSE 100 6,717.4 -3.94 -0.1%

CAC 40 4,251.56 -20.75 -0.5%

DAX 8,984.05 -1.69 0.0%

European stocks were little changed after a three-week rally as investors awaited U.S. data on industrial production and housing for signs of the health of the world’s largest economy. U.S. futures and Asian shares rose.

The Stoxx Europe 600 Index slipped 0.1 percent to 319.81 at 11 a.m. in London, erasing an earlier gain of 0.3 percent. The benchmark gauge rose 0.5 percent last week as disappointing U.S. jobs data fueled bets the Federal Reserve will maintain its stimulus measures until at least March. The index has soared 14 percent in 2013, closing at a five-year high on Oct. 22.

Reports today may show U.S. industrial production rose 0.4 percent in September, while pending home sales were little changed, according to economists surveyed.

Members of the Federal Open Market Committee are scheduled to meet Oct. 29-30, when they will consider scaling back asset purchases that have helped the Stoxx 600 more than double since March 2009. Policy makers will wait until March before starting to taper the $85 billion of monthly bond purchases, a Bloomberg survey showed this month.

TNT Express (TNTE) climbed 3.9 percent to 7.07 euros even after the package-delivery company reported a decline in sales and operating income. The company said it will step up restructuring efforts, without providing further details.

Aggreko Plc, the world’s largest provider of mobile power generators, rose 3.5 percent to 1,570 pence after saying “underlying” revenue and trading ">Mediobanca SpA (MB) climbed 3.2 percent to 6.53 euros after fiscal first-quarter profit climbed 57 percent at Italy’s biggest publicly traded investment bank. Net income rose to 171.2 million euros in the three months ended Sept. 30 from 109 million euros a year earlier, including a 58.8 million-euro gain from the sale of part of its holding in Telco SpA.

FTSE 100 6,717.4 -3.94 -0.1%

CAC 40 4,251.56 -20.75 -0.5%

DAX 8,984.05 -1.69 0.0%

USD/JPY Y97.00 Y97.20 Y97.25 Y97.50 Y98.00 Y98.20 Y98.75

EUR/USD $1.3700 $1.3765 $1.3780 $1.3805

USD/CHF Chf0.8950 Chf0.9000 Chf0.9030

AUD/USD $0.9600 $0.9645 $0.9665

USD/CAD C$1.0350 C$1.0450

NZD/USD $0.8395

EUR/GBP £0.8500

EUR/CHF Chf1.2325

Asian stocks rose, with the regional equities gauge rebounding from last week’s decline, after weaker than forecast U.S. consumer confidence spurred bets the Federal Reserve will maintain stimulus.

Nikkei 225 14,396.04 +307.85 +2.19%

Hang Seng 22,806.58 +108.24 +0.48%

S&P/ASX 200 5,441.41 +55.06 +1.02%

Shanghai Composite 2,133.87 +0.91 +0.04%

CSL Ltd. , a maker of blood-derived therapies that gets more than a third of its sales in the U.S., advanced 3 percent in Sydney.

Toyota Motor Corp. gained 1.8 percent in Tokyo as the yen weakened against the dollar, boosting the earnings outlook for Asia’s largest carmaker.

Kingsgate Consolidated Ltd. fell 5 percent in Sydney as the gold miner reported an 18 percent drop in quarterly output.

The yen extended its three-week decline against the euro after Deputy Governor Kikuo Iwata reiterated the Bank of Japan’s commitment to unprecedented monetary easing. The yen weakened against all its major peers as the BOJ is due to meet this week, and is expected to continue buying more than 7 trillion yen ($72 billion) in Japanese government bonds each month to end deflation. The BOJ will continue to buy bonds until it achieves its 2 percent inflation target, Deputy Governor Iwata said yesterday in Shimonoseki, western Japan. The country’s monetary and fiscal policies are at a critical point for ending deflation, he said. Policy makers hold a one-day meeting on Oct. 31.

The euro traded near a two-year high against the dollar before the Federal Reserve begins a two-day meeting tomorrow, with economists predicting policy makers will refrain from tapering stimulus. Fed policy makers, meeting tomorrow and Oct. 30, are trying to gauge the strength of the U.S. expansion. The central bank will wait until its March 18-19 meeting to pare the monthly pace of asset buying to $70 billion from $85 billion, according to the median of responses in a Bloomberg News poll this month.

The Australian and New Zealand dollars strengthened against most of their major peers before a report this week predicted to show manufacturing grew at the fastest pace in 18 months in China, the biggest trading partner of both South Pacific nations. The National Bureau of Statistics and China Federation of Logistics and Purchasing will say the Purchasing Managers’ Index (CPMINDX) rose to 51.2 in October, according to the median estimate of economists ahead of the Nov. 1 report.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3795-15

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6165-90

USD / JPY: during the Asian session the pair rose to Y97.65

Early European releases start with the 0645 GMT release of France Sep consumer spending and Oct consumer confidence. This is to be followed by Italy's Oct ISTAT business survey at 0900 GMT. Over to the UK after that, at 1000 GMT, with the release of the UK Oct CBI Distributive Trades Survey. Later, at 1030 GMT Germany's Bundesbank Vice President Sabine Lautenschlaeger speaks on banking supervision in the past and future, in Frankfurt. About an hour later, at 1130 GMT EMU ECB Governing Council member Luis Linde is scheduled to give a speech at a conference on family-owned businesses, in Jerez de la Frontera, Spain.

The week ahead will be packed with data, as both the Census Bureau and the Labor Department play catch-up with data postponed due to the government shutdown. US Sep Industrial Production and Sep Capacity Utilization start the data slate today with a 1315 GMT release followed by the 1400 GMT release of US Sep NAR Pending Home Sales. 30 minutes later, US Oct Dallas Fed Mfg Survey is then due at 1430 GMT. In terms of speeches in the US today, US Acting FHFA Director Ed DeMarco and CFPB Director Richard Cordray are both due to speak to a housing conference on new regulations, in Washington at 1445 GMT. Then, at 1530 GMT US FHA Commissioner Carol Galante is scheduled to give a speech on reforming finance at a conference in Washington. Following that, EC Economic and Monetary Affairs Commissioner Ollie Rehn will speak on Europe's path to recovery at 0200 GMT in San Francisco.

11:00 United Kingdom CBI retail sales volume balance October 34 33

13:00 United Kingdom BOE Chief Economist Spencer Dale Speaks

13:15 U.S. Industrial Production (MoM) September +0.4% +0.5%

13:15 U.S. Capacity Utilization September 77.8% 78.1%

14:00 U.S. New Home Sales September 421 427

14:00 U.S. Pending Home Sales (MoM) September -1.6% +0.5%

23:30 Japan Household spending Y/Y September -1.6% +0.7%

23:30 Japan Unemployment Rate September 4.1% 4.0%

23:50 Japan Retail sales, y/y September +1.1% +0.5%