FX Closing Comments

The dollar had a tough day slipping in all the majors. A strong Japanese Tankan Report led the charge with the Index for Large Manufacturers rising to 24 from 21. This is its strongest level since the Third Quarter 2004. Apparently, Japanese manufactures are benefiting from strong export performance and industrial production figures. Across the pond a favorable U.K. September manufacturing PMI jumped to 54.4 from 53.0 well above the estimated 52.4. The Euro also received a boost after a closely-watched survey showed euro zone manufacturing growth held firm in September, keeping up with the expectations intact that the European Central Bank would raise interest rates this week to 3.25 percent. The Euro started this weeks trading against the dollar at 1.2665 level and has since rallied to 1.2740.