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Today’s highlights:

• BBA Mortgage Approvals (GB, 09:30 GMT)
• Core Retail Sales (MoM) (CAN, 13:30 GMT)
• Interest Rate Decision (CAN, 14:00 GMT)
• BoE Gov King Speaks (GB, 18:00 GMT)

U.S. home values jumped 1.3 percent in the third quarter, the biggest gain since 2006, in an uneven recovery across the country, Zillow Inc. (Z) said. The median value rose to $153,800 from $151,800 in the previous three months on a seasonally adjusted basis, the Seattle-based property-data company said in a report today.

The euro area’s 500 billion-euro ($652 billion) bailout fund faces another test as the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form. A complaint by Thomas Pringle, an independent member of the Irish parliament, has reached the Luxembourg-based EU Court of Justice, which has the power to topple the European Stability Mechanism, or ESM. A hearing is scheduled for today, with a ruling possible as soon as the end of the year under a fast- track procedure.

Moody’s Investors Service, a week after deciding against cutting Spain’s credit-rating to below investment grade, lowered Catalonia and four other Spanish regions. Catalonia, which will hold an early election on Nov. 25 focused on whether to seek independence for the region that accounts for a fifth of Spain’s economy, was reduced two steps to Ba3 from Ba1, the ratings firm said in a statement dated yesterday.

EUR/USD: The EUR/USD was trading within 24pips (1.30740 – 1.30492) since the beginning of the session in Asia as investors jumped to the sidelines awaiting for some news in the Eurozone and the U.S to better assess the direction of the pair. Spanish Prime Minister Mariano Rajoy’s center-right Popular Party increased its majority presence in the prime minister’s home region of Galicia, which investors saw as a sign of support for economic policies needed to request a bailout. Yesterday, market sentiment took a blow, when the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form and after Moody’s Investors Service cut Spain’s credit-rating to below investment grade. Investors should be very cautious as sentiment remains fragile on the EUR. Economic data that are likely to bring some volatility on the market are French Business Survey at 07:25 GMT and Spanish 3-Month and 6-Month Letras Auction at 09:45 GMT. Later in the day, the U.S will release the Richmond Manufacturing Index at 15:00 GMT, and the API Weekly Crude Stock and API Weekly Gasoline Stock at 21:30 GMT. Market sentiments and speculations will be driving the market ahead of the Federal Reserve’s latest statement on U.S. monetary policy this week. The resistance level is at 1.31294 and the support level is at 1.30103.

USD/CAD: The USD/CAD was trading slightly higher at 0.99228 at the time of writing after Canada rejected on Oct. 19 a C$5.2 billion ($5.23 billion) bid by Petroliam Nasional Bhd. for Calgary-based Progress Energy Resources Corp. (PRQ) and on speculation the Bank of Canada will put less emphasis at a policy meeting tomorrow on raising interest rates. Central-bank Governor Mark Carney suggested in an Oct. 15 speech that tomorrow’s economic forecast will reflect a slow global recovery. Moreover, the CAD weakened as oil, the nation’s biggest export, fell. Crude-oil futures tumbled as much as 2.1 percent to $88.20 per barrel in New York, the lowest level in more than two weeks. Carney has kept his key interest rate at 1 percent for more than two years and will probably leave it unchanged again at tomorrow’s policy meeting, according to a survey of Bloomberg economists. The BOC chief’s speech a week ago omitted language he’s used since April (APR) that raising interest rates “may become appropriate” as Canada’s economy approaches full output. The omission spurred speculation the central bank will remove the phrase from its interest-rate announcement. The benchmark rate won’t be changed, economists in a Bloomberg survey forecast. Investors should be very prudent and wait for the Core Retail Sales (MoM) and the Interest Rate Decision in Canada to come on market to get visibility on the trend of the pair. The resistance level is at 0.99630 and the support level is at 0.98831.

Gold: Gold was trading lower at 1724.41 at the time of writing after news came out that Moody’s Investors Service cut Spain’s credit-rating to below investment grade, lowered Catalonia and four other Spanish regions and the European Union’s highest court weighs claims that the firewall violates EU law and should be banned in its current form. Investors should be cautious as Market sentiments remain very fragile ahead of the Federal Reserve’s latest statement on U.S. monetary policy this week, which sparked some gold selling and demand for the greenback. Investors should also keep on the latest developments in the Eurozone regarding the debt crisis to get some visibility on the commodity. For further indication investors should closely monitor the trend of the USD as, the gold and the USD often trade inversely to each other. The resistance level is at 1742.58 and the support level is at 1713.04.

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