Sandy Keeps a Lid on Markets

Trading slowed to a standstill after Europe closed on Tuesday. On the day, the euro was the best performer while the US dollar lagged. Trading will pick up for the rest of the week as US bond and stock markets reopen on Wednesday to coincide with month-end. EURUSD, EURJPY, cable, gold, silver and EURGBP in progress. More below.

Early US trading carried over the slight risk-positive mood from Europe, sending EUR/USD to 1.2984 but those gains dissipated and the pair fell back to 1.2964. It is difficult to read anything into the moves because participation was so limited.

Wednesday presents another problem because month-end flows could unhinge intermarket correlations.

The lone data point in the session was the US Case-Shiller home price index, which rose 2.0% compared to a 1.9% rise expected. House prices rose in 19 of the 20 cities tracked.

The Asia-Pacific calendar features several highlights including the Japanese manufacturing PMI at 2313 GMT. A 0030 GMT, Australia releases housing credit figures and thirty minutes later the focus remains on the home market with Japanese housing starts.

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