Turning to Existing Home Sales, USDX at 6-Week Highs

Gold fell below 1700, Conservative party in Spain wins election but Spanish yields continue to rise; Eurozone current account shows surplus; BoE calls for more QE; Moody's warns France. Market turns to existing home sales and Canadian wholesale sales.6 trades hit all targets, 6 unfilled, 5 in progress, 2 stopped out.

Euro fell fails to gain traction after Mariano Rajoy's Conservative People's party won in a landslide in Spanish election. The People's party promises to cut the budget deficit while reducing the unemployment and stimulating growth. Despite these pledges, the 10 year yield continues to rise and trades around 6.54%.

USD Index at 6-week highs, nearing both 100 and 200 WEEK moving averages. Gold, touches below both the 55 & 100 DAY MAs

2 of 3 EURUSD Intermarket Indights hit all targets, none of the 2 EURJPY were filled, EURGBP & GBPCAD trades are in progress, 1 USDCAD stopped out, 1 ES stopped out, 1 ES unfilled, 1 Gold short all done, 1 other unfilled, both silver shorts all done, 1 oil short all done, 1 unfilled. See here for more detail: http://ashraflaidi.com/products/sub01/access/?a=553, For a 1-week Subscription, click here: http://ashraflaidi.com/products/sub01/

Even solid fundamental data was not enough to change the bearish market sentiment as the Eurozone current account balance positively surprised when it showed a EUR 0.5 bln surplus in September after EUR -5.9 bln deficit in August. The market expected a EUR -3.2 bln deficit.

BoE Adam Posen reiterated today his view that the ECB and the FED should engage in "large scale bond purchases" in order to stimulate their economies by lowering interest rates and encouraging investment. Mr. Posen is known for his fear that monetary stimulus would be removed too early before recovery is secured.

French 10 year yield rose today after Moody's warned that French higher yields would cause fiscal challenges and lead to deteriorating growth outlook with negative credit implications. The German-French 10 year spread widened and reached a high of 1.72%.

The US session starts with Canadian wholesale sales at 8:30 am ET that are expected to grow 0.6% in September from 0.2% in August.

Existing home sales are due at 10:00 am and are seen lower at 4.8M in October from previous 4.91M.