This is a review of the elements likely to affect foreign exchange (forex) trading in Europe:

Main headlines

Spain's Rajoy to seek bailout if yields too high for too long - Reuters

Consumer Confidence in US Rises to a Seven-Month High - Bloomberg

Gold Poised for Best Quarter Since 2010 on Investor, Bank Demand - Bloomberg

Americas wrap-up

Plosser Says QE3 Risks Fed Credibility, Won't Boost Jobs - Bloomberg

Americans Feeling Better Than in 2009 Amid Scepticism on Obama - Bloomberg

US urged to consider rise in retirement age - FT

EU rejects US claim to have weaned Boeing off subsidies - Reuters

China Reaches for Control of More Canadian Oil - CNBC

Mexico hedges against oil price slide - FT

Chávez Rival Rises in Venezuela Polls - WSJ

Asia-Pacific summary

Asian Stocks Fall on Investor Concern on Stimulus Effect - Bloomberg

China-Japan Foreign Ministers Meet as Island Tensions Hurt Trade - Bloomberg

China Navy's First Aircraft Carrier Launched - Bloomberg

Japan's Confidence Poised to Weaken in Warning for BOJ - Bloomberg

Japan opposition gives ex-PM Abe second chance amid China feud - Reuters

Australia's Biggest Banks Split Over RBA's Oct. 2nd Rate Move - Bloomberg

Indonesia Should Boost Spending If Risks Materialise: IMF - Bloomberg

Toyota to reduce China-bound production - FT

Samsung Sees Stronger Start for Note 2, Unfazed by iPhone - Bloomberg

Sharp Plans 10,000 Job Cuts, Sale of TV Plants - Bloomberg

European news

Martin Wolf: Why euro exit is an option for Germany

Rehn Urges End to Doubts about Euro's Sustainability - Bloomberg

Euro Zone Considers Central Budget

Brussels to push for EU-US airline mergers - FT

EU solar-panel makers file China lawsuit - FT

Secession crisis heaps pain on Spain - FT

Rajoy Defied as Catalan Head Seeking Autonomy Calls Vote - Bloomberg

Euro hits 2-week low, hurt by worries over Spain - Reuters

Euro May Drop to 12-Yr Low Versus Yen: Technical Analysis - Bloomberg

BoE's Fisher: confident of new scheme boost to UK credit supply - Reuters

US probe of HSBC tangled up in bureaucracy, infighting - Reuters

SNB hits back at S&P bond-buying report - FT

Hungary Rate Cut Raises Concerns over Monetary Policy - WSJ

FOREX action

EUR: After yesterday's short-lived gains the main euro cross-rates go back to its recent consolidating stance. Spain's internal political woes make the headlines amid all the talk about the expected sovereign bailout from its European peers. EUR-USD is trading lower and a test of the 200-day moving average in is the cards. We keep an overall bearish call on the euro pairs.

GBP: The sterling crosses are losing their recent upward momentum. Yesterday's fairly strong BBA mortgage figures boosted them. Today in the face of euro weakness we see the pound doing some book squaring. Cable trades below 1.6200, while GBP-JPY is a tad below 125.70. EUR-GBP is still below 0.8000 moving close to 0,7960.

CHF: The Swiss franc hedges higher versus the common currency after the S&P report that sheds light on the bond-buying programme of the SNB. The Swiss central bank is supposed to be buying core bonds to defend the 1.20 floor in the EUR-CHF. Meanwhile, USD-CHF is trying to break the resistance found at 0.9400.

Nordics: The Swedish krona continues to trail behind the Norwegian kroner during the last few days. The SEK is weak against the euro and the dollar. The NOK seems to be more supported by the strength of oil prices.

USD & JPY: The US dollar and the Japanese yen are still buoyed by the flight to safe-haven assets found in a risk-averse context. USD-JPY trades below 78.00. It could be feasible to see a vist to the recent 7-month low at 77.131 if it breaks the 77.50 area.

CAD, AUD & NZD: The three dollars go back to the red. Today the aussie leads the pack taking the baton from the heavily battered kiwi. Australia's biggest banks economist are split over RBA's next move. They are divided between a 25 basic points rate cut and no action. It is also worth noting that China and Japan Foreign Ministers are meeting to defuse Senkaku island's tensions. Their growing bilateral trade is too important and demands a safe pair of hands.

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