Weekly Market Review

October 10, 2010 Visit eToro’s new social trading network:

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The equity markets had one large surge mid-week, and consolidated during the balance of the week, as
market participants waited for the US unemployment report. The number was worse than expected as
government jobs declined by more than double expectations to show a loss for the month of September of
95 thousand jobs. The private employment figure increased by 64 thousand jobs which was in line with
expectations, which allowed market participants some form of sigh of relief. For the week the S&P 500 Index
increased by 19 to close at 1165.

EXCHANGE RATES
Instrument Trend Support II Support I Spot Resistance I Resistance II
EUR/USD 1.2550 1.2950 1.3907 1.4155 1.4605
GBP/USD 1.5318 1.5450 1.5957 1.611 1.6310
EUR/GBP 0.8110 0.8150 0.8715 0.9146 0.9402
USD/CHF 0.9509 0.9600 0.9617 1.0640 1.0990
USD/JPY 80.21 81.53 82.08 87.20 93.10
USD/CAD .9953 1.0020 1.0124 1.0680 1.0740
EUR/JPY 107.70 109.85 114.16 1.1569 1.1845
Oil 72.20 78.10 82.67 83.30 87.06
Gold 1160 1280 1349 1366 1399
Silver 17.36 19.88 23.13 23.53 24.83

THIS WEEK’S EVENTS

 Japanese Consumer Confidence is expected to remain stable
 UK CPI will be watched closely by the BOE
 UK Claimant Count will give a gauge of the UK employment situation
 US Retail Sales will reflect the state of the consumer in the US

For more market analysis and news visit www.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 Weekly Market Review
October 10, 2010

THIS WEEK’S VIEW & TRADING IDEAS

The Euro broke 1.39 continuing the run that began in early September. The move in the EUR/USD
EUR/USD is more a function of the dollar weakness then euro strength. The spread between German 2 year
yields and US 2 year yields have widened out to 47 basis points which makes holding dollars
expensive.
Despite effort from the BOJ in the form of intervention and easing of interest rate policy, the Yen
USD/JPY continued to strengthen this week. The USD/JPY broke through the 83-82 level, and continues to
test the resolve of the BOJ. Japan will need to find a solution to the strengthening Yen beyond
unilateral intervention. The issue is that every government seems to want a weaker currency.

A better than expected employment report in Australia, pushed the AUD/USD currency pair to an
AUD/USD
all time intra-day high. The currency pair is close to par, and with the likelihood of the RBA raising
rates to 4.75 percent in November, the 1-1 relationship will likely move in favor of the AUD.

Gold Gold Prices moved to an all time intra-day high of 1366, and closed at 1347 higher on the week.
Gold prices continue to show strength and rebounded after the disappointing US employment
report, as a QE 2 by the FOMC is likely pushing gold prices even higher.

FINANCIAL CALENDAR
Time
Currency Release Month Consensus Prior
(GMT)
GBP M 23:01 BRC Retail Sales Monitor Sept 1%
AUD T 0:30 NAB Australia business confidence Sept 5 5
JPY T 5:00 Consumer Confidence Sept 42 43.5
GBP T 8:30 UK consumer prices Sept .5%
GBP T 8:30 UK Trade Balance Aug -4.7b -4.8b
USD T 18:00 FOMC Minutes
CHF W 7:15 Swiss Producer Prices Sept 0.5% 0.5%
GBP W 8:30 UK Claimant Count Sept 2.3K
EMU W 9:00 EMU Industrial Production Aug 0%
USD W 12:30 US Import Prices Sept 4.1%
AUD T 1:30 Australia Consumer Inflation Expectations Oct 3.1%
EUR T 8:00 ECB monthly report
USD T 12:30 US Jobless Claims Oct 445K
USD T 12:30 US Producer Prices Sept 0.1% 0.1%

For more market analysis and news visit www.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 Weekly Market Review
October 10, 2010

Time
Currency Release Month Consensus Prior
(GMT)
JPY F 4:30 Japan Industrial Production Aug 0.2%
EUR F 9:00 EMU CPI Sept 0.2%
EUR F 9:00 EMU Trade Balance Aug 6.7B
USD F 12:30 US CPI Sept 0
USD F 12:30 US Retail sales Sept 0.3%
USD F 13:55 US consumer confidence Oct 68.2

For more market analysis and news visit www.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 Weekly Market Review
October 10, 2010

TECHNICAL OPPORTUNITIES OF THE WEEK

EUR/USD

General Overview The Euro pushed higher moving above 1.39 as a decline in US yields and a potential
QE2 pushed the dollar lower The Euro is likely to continue to grind higher, as its seems the US central
bank in interested in a weak dollar.

For more market analysis and news visit www.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 Weekly Market Review
October 10, 2010

AUD/USD

General Overview The Australian dollar moved higher, on the back of a better than expected Australian
employment report. Given the RBA kept rates unchanged, the market will likely price in that the RBA is
behind the curve.

Weekly Market Review

October 10, 2010 For more market analysis and news visit www.eToro.net
Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 GOLD

General Overview Gold prices surged to a new all time high touching 1366, before settling at 1348.
Gold prices are being pushed along by a weaker dollar. Friday’s US employment number helped
continue the trend, as traders believe that the FOMC will be forced into a second QE.

For more market analysis and news visit www.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accept
them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.