Wise money markets return to normal after Sandy Storm

After a fairly quiet start to the week with the US markets closed for most part, markets returned to normal operations late last evening.Wise money markets return to normal after Sandy StormMost investors who were getting out of risky assets on the news of hurricane Sandy, flocking to the greenback, squared off positions and moved into other markets overnight.

This caused the US Dollar to strengthen in the earlier part of the week, with the single currency losing a bit of momentum and getting back to over 1.61 levels.

Markets chose to ignore most of the poor economic data emanating from Europe, as they focussed on near term activity ahead of announcements later this week.

Also there were figures from the Chinese PMI Index which showed manufacturing has dipped ever so slightly but still above the level to warrant growth.

The unemployment figures from Europe do not make for pretty reading as they further increased to 11.5% for September, rising a percent from the earlier month.

For the second month in a row, we also had the Chicago manufacturing report which showed a further contraction in the region.

This has led the euro/US Dollar pair to break below the temporary spike it had over the 1.30 mark as we begin today at 1.2925 levels.

The weakness in the euro has increased further on news that the EU government continues to push Greece for further spending cuts and austerity measures, before they can provide the €31 billion tranche of funding for the debt ridden nation.

On the other hand, news from Greece looks even more bleak as they have forecast a worse than expected reading for the next year’s continued recession.

Two of the biggest unions have called for an ‘austerity strike’, as the country grapples with soaring unemployment, which has now reached to 1 in 4 people being out of work.

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