The dollar lower vs almost all of the currencies we track except RUB

•       Capital shortfall of €25 billion at 25 banks, twelve of which have already covered their capital needs

•       ECB unveiled on Sunday that 13 out of 130 largest Eurozone banks will need to raise additional capital in order to weather another financial crisis

•       In another report, the European Banking Authority published the results of the 2014 stress test and 14 out of 123 banks fall below the defined capital thresholds

•       Following the results several questions remain to be answered: ECB’s Asset Quality Review showed the carrying values of banks’ assets as of 31 December 2013, have the values changed since then?

•       Now that the majority of the banks pass the test, will there be more demand in the second LTRO allotment in December?

•       The dollar lower vs almost all of the currencies we track except RUB: probably due to the fact that pro-western parties seems to dominate the country’s parliamentary elections

•       Today:

•       Eurozone: German Ifo survey for October, Eurozone’s M3 money supply, ECB is expected to reveal how much it spent on covered bonds since the program began on Oct. 20.

•       US:  Preliminary Markit service-sector PMI for October, Pending home sales for September Dallas Fed manufacturing index

•       Rest of week:

•       Tuesday:  Sweden’s central bank meeting: Forecast of 15bps rate cut

•       Wednesday:  FOMC rate decision, RBNZ policy meeting

•       Thursday:  US 1st estimate of GDP for Q3, German CPI for October 

•       Friday: Bank of Japan ends its two-day policy meeting