Daily Forex Brief 04h October

Daily Forex Brief London: Tuesday 4th October 2011

Greek aid delay adds to uncertainty With no fresh inspiration arising from the latest meeting of eurozone finance ministers and Luxembourg's Prime Minister Jean-Claude Juncker suggesting that the troika will not complete their assessment on whetherGreece has satisfied the conditions for the next tranche of bailout money until mid-November, the euro was under fresh assault yesterday. Indeed, yesterday was a truly dreadful day for the single currency ? it fell from near 1.34 near the middle of the London session to a low of 1.3165 early in Asian trading. Rumours (subsequently denied) were swirling around yesterday claiming that Greek Prime Minister Papandreou had offered to resign. And Didier Reynders, Belgium's finance minister, intimated that Greece has enough money to survive for another six weeks. Not surprisingly, the repulsion for risk has continued overnight, with the dollar in hot demand, and both equities and bond yields under further downward pressure. The S&P 500 ended down nearly 3% at 1,099, a 13m low, while the Kospi was suspended for a time overnight after a 5% decline.

Also in today's Daily Forex Brief: The dangers of defensiveness China's property pickle The pound ? not pretty but effective UK Chancellor further blurs the fiscal and monetary policy divide