OCTOBER 12 - Watching from the sidelines

EURO: After testing the 1,31 area versus the Dollar, the European lead currency is supported by the political and financial attempts to find solutions to the bond funding crisis. Today it seems that the European Financial Stability Facility will after all be enlarged because the Slovakian opposition agreed in principal to approve such enlargement during a second referendum by the end of the week. As market movements are in line with sentiments following almost each and every news alert we decided to watch current movements until we feel more confident to enter.