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

Main headlines

China Inflation Cools in Sign Growth Is Stabilising - Bloomberg

US stimulus 'good for global economy', says Bernanke - FT

Spanish aid request seen landing in November - Reuters

Greece Will Probably Leave Euro Within Six Months: Borg - Bloomberg

Fischer Says World Is 'Awfully Close' to Recession - Bloomberg

Americas wrap-up

Federal Reserve flirting with higher inflation - Reuters

Bernanke Says Easing Won't Destabilise Emerging Markets - Bloomberg

Forecasts for faster GDP growth entail avoiding fiscal cliff - Reuters

US consumer sentiment jumps ahead of elections - Reuters

Obama Competes With Romney in Targeted Ad War on China Trade - Bloomberg

In second debate, Obama faces challenges on key issues - Reuters

Tombini Says Brazil Will Defend Itself From Capital Inflows - Bloomberg

Colombia Ditches Brazil at IMF as BRIC Power Estranges Neighbors - Bloomberg

Asia-Pacific summary

Chinese Exporters: Situation 'Already Worse Than 2008' - CNBC

Chinese inflation steadies at 1.9% - FT

Stars are aligning for further China currency liberalisation - FT

Japan Debt Worries Echo Europe - WSJ

India Government Seeks Lower Rates as More Economy Steps Planned - Bloomberg

Rupee Leads Drop in Asian Currencies on Global Slowdown Concern - Bloomberg

Stevens Says RBA Has Rate Ammunition as Swan Pushes for Growth - Bloomberg

Singapore Central Bank Holds Policy Steady - WSJ

Singapore strikes deal on tax dodgers - FT

Property Exuberance Is Reborn in Indonesia - WSJ

Cambodia's quixotic former king Sihanouk dies in Beijing - FT

European news

Euro Falls on Growth Outlook, Spanish Aid Uncertainty - Bloomberg

EU Girds for Summit as Nobel's Glow Fades on Crisis Response - Bloomberg

Spain's Housing Bust Creates Bargains for Buyers - CNBC

De Jager Says Greece Needs to Make Fiscal Reforms Immediately - Bloomberg

Switzerland Prepares Army for Euro Zone Fallout - CNBC

Secessionist wave sweeps Belgium - FT

Scotland to Vote on Independence in 2014 - WSJ

Cameron Makes UK Unity Case as Scottish Vote Agreed - Bloomberg

Hungary's Orban Yields to Brussels on Budget - WSJ

US woman takes on banks over Libor - FT

Vivendi in SFR telecoms merger talks - FT

CME Europe to debut with 30 forex products - FT

FOREX action

EUR: The euro cross-rates start the week in range-bound trading. In the coming days EU leaders will meet in a new summit that is poised to make no significant impact on the markets. Greece and Spain are expected to be the bones of contention. EUR-USD holds above 1.2900. We need to see the breakthrough of the 1.30 resistance zone to confirm the formation of a batman technical pattern. EUR-JPY trades close to 101.50.

GBP: The sterling crosses move sideways. Cable is close to 1.6030 while GBP-JPY is in the vicinity of 125.95. EUR-GBP is rallying towards 0.8060. We are still looking for a new test of the 0.8100 resistance zone. Overnight, October's Rightmove house prices in the UK gave a positive reading.

CHF: There is subdued price action in the Swiss franc cross-rates. USD-CHF hedges up close to 0.9350 and is still stuck in the 0.9300-0.9400 range. EUR-CHF is trading below but close to 1.2100. According to Swiss newspaper Der Sonntag, Switzerland's army is prepared for Eurozone fallout and the eventual arrival of refugees from Greece, Spain, Italy, France and Portugal.

Nordics: The Swedish krona and the Norwegian kroner start the week red-tainted. Both the SEK and the NOK lose ground against the euro and the greenback. EUR-SEK trades above 8.6800 and EUR-NOK is again below 7.40.

USD & JPY: The US dollar and the Japanese yen are back in demand in a risk-on/risk-off context. Today's macro figures in the US could affect USD trading, above all retail sales numbers.

CAD, AUD & NZD: The three dollars are not in vogue. Volatility and China's macroeconomic figures do not favour long positions. Chinese inflation measures show that growth is still cooling. AUD-USD is still holding above 1.02.

Related share prices