– France downgraded by Moody’s
– BoJ left asset purchases unchanged
– India considers raising foreign holding limits for sub-category debts
– Eurogroup meeting in Brussels today
What to watch for today
USD: Bernanke in the spotlight. Fed Chairman Bernanke will address the Economic Club of NY at 12:15pm EST, on the topic of “The Economic Recovery and Economic Policy.” It will be interesting to hear if he mentions plans for continued QE3 in 2013 or echoes Vice Chair Yellen’s endorsement of the Evans Rule. But we doubt he will be that forthcoming just three weeks before the December 11-12 FOMC meeting. On the data front, we expect a pullback in housing starts from 872K to 845K in the month of October, but in the light of the strong existing home sales data released yesterday, we believe the surprise bias risk lies to the upside.
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