European Morning Forex Wrap Up; Kinda drab Monday morning, matches weather

• U.S. Treasury’s Kirk:  Not willing to give up trade actions in return for China yuan movement
• U.S. Commerce’s Locke: Pleased with China progress on yuan, but more needs to be done. China must not engage in protectionism, including barring foreign firms from some sectors
• Obama: Key for both U.S. and China to take “critical steps” to tackle global climate change
• China says “studying” proposal to aim for political deal at Copenhagen
• Obama: Backs one-China policy. Hopes for further improved China-Taiwan ties
• Obama: The freer information flows, the stronger a country becomes. Says he’s a big supporter of non-censorship and open internet use
• Shanghai share index ends up 2.7%, highest close in more than 3 months
• ECB’s Ordonez; It is clear that any rise in interest rates is off the screen. Markets do not expect any change before H2 2010
• ECB’s Nowotny: Current crisis posing wide range of challenges, putting single currency to test
• Hong Kong’s CEO Tsang: Zero, or near zero, interest rates once again creating asset bubbles in emerging markets
• German EconMin Bruederle: Jobs market expected to turn gloomier in winter

Maybe it’s me, but that seemed like a bit of a non-event.

EUR/USD sits at 1.4965, exactly where it was when I sat down 7 hours ago. Inbetween EUR/USD managed an early rally, bolstered by lack of developments on the yuan revaluation front and by generally decent risk appetite. European stocks opened firmer and tacked on some further gains, although it was measured stuff rather than anything spectacular. FTSE 100 and DAX 30 up around 1%. Elsewhere oil is up about a buck.

We got as high as 1.4994, before well-touted sell interest just ahead of 1.50 up through 1.5010 capped the rally. Talk of buy stops now gathered around 1.5020/25. We then drifted slowly lower, reaching  a session low 1.4953 before steadying.  Pretty pedestrian fare.

Cable at 1.6700 is also little changed. Starting around 1.6710 the pairing rallied to session high 1.6752 against backdrop of generally robust risk appetite before doing a sharp about turn. A French name was seen selling good amounts on the way down.

We eventually got as low a 1.6671, where touted buy orders at 1.6665/75 managed to hold the line. Sell stops noted just below 1.6650. Funnily enough a French name was also seen as a notable buyer down at 1.6670/75. Mon dieu, sacre bleu and all that old toffee.

USD/JPY at 87.60, unchanged on the morning. Kinda sums it all up really.