AUTOREFRESH 
ForexLive European Morning Wrap: Lotta noise, not a lotta change
- ECB spokesman: Trichet changing flight plans from Australia to Europe purely because of logistics. ECB President had accepted invite to Thursdays EU summit in mid-January
- German December trade surplus s.a. 16.7 bln vs 17.0 bln in November. Down but better than median forecast of 15.0 bln
- German final December CPI confirmed at -0.6% m/m, +0.8% y/y
- China January passenger car sales up over 100% y/y – Official data
- Greece considering raising average real retirement age to 63 from 61 by 2015. Greek pension system to face funding problems by 2015 if no changes made
- UK December global goods trade balance -£7.278 bln vs -£6.798 bln in November, much worse than median forecast -£6.63 bln. Gap widest since January 2009
- EIB: Cannot take part in bailouts that involve budget deficits or balance of payments support.
- Hector Sants quits as CEO of UK Financial Services Authority (FSA)
When all said and done alot of huffing and puffing but not alot of change on the majors.
We started the day, the market all a twitter at the news that Trichet had changed his flight plans and booked an early flight back to Europe from Australia to attend this Thursdays EU meet. Speculation grew that a plan was going to be hatched to save Greece. Turns out the switch was purely logistical and Trichet had accepted an invite to the meeting back in mid-January.
EUR/USD started around 1.3695 and rose early on the Trichet speculation. On the way higher Russia was a notable seller into strength (probably booking a little profit having recently been a notable buyer in the low 1.36’s.)
Eventually we got to a session high 1.3746 where the BIS stepped in as a seller and that was the top in place. We were already slipping lower when the news that Trichet’s plane switch was purely logistical hit the wires. EUR/USD skidded below 1.3700, but the stay there was brief and we’re back at 1.3725.
Talk has buy orders lined up at 1.3695 down through 1.3680. On the top side, conflicting talk. Some have stops through 1.3750, some through 1.3760.
Cable little lower on the morning, presently at 1.5585 from an early 1.5610. Started out well for the pairing as it rallied to session high 1.5646 where it ran into a brickwall. Things were already turning sour when the release of particularly disappointing UK trade data increased the pressure, sending us to session low 1.5563 before some recovery.
USD/JPY has made some marginal ground, presently at 89.65 from early 89.40. Talk of sell orders 89.90/00, stops through 90.10. Buy orders 89.00/20, stops just below.
AUD/USD up at .8720 from early .8775. Asian sovereign buying has helped support.
So the upmove was because of the Trichet speculation. Some people speculate on everything….
theres a llttle action jackson
This scenario reminds me very much of the last time the UK went bankrupt. The then chancellor Denis Healy was due to fly to a meeting on the continent. That very morning the pound collapsed and he cancelled his trip which made things worse. Makes me wonder if the Eurozone is bankrupt. It’s certainly politically bankrupt and useless.
well either that or it could have been……wait for it……TECHNICAL!!!!!!
stop hunting pricless, reminds me of my past glory days at the CME
I’ve noticed quite a few people lately berating rumours, speculation etc. hate to tell ya peoples, that’s all part and parcel of financial markets. best get used to it.
well said, part of the cost of doing business. Run them and gun them, if you can that is
ahhhh, the good old CME. when I lived in the U.S Chicago was my favourite city. .I once bumped into Hilary Clinton and her security entourage in the foyer of the Sheraton there. She didn’t even bother saying hello…..misery guts.
Yea Chicago is a great town, great for trading and great for drinking
Denis Healy, one of my all time favourite politicians. And a Labour politician to boot. Always seemed such a nice man.
I had to go up to see First Chicago a few times. Needed to keep them sweet as they were one of our (Thomsons) biggest customers in North America.
First Chicago blast from the past. I got my first ATM card from them. There’s a memory for you..
They had a very strange dealing room. reminded me of a large cave…..(maybe it was just me)
Well one of the best trading rooms was the CRT trading room in the Sears Tower,
complete with a huge cafeteria which even had meatlockers of all things.
Yes Gerry well said, better be used to stop hunting…after all even when the SL gets hit if you’re confident you’ll just sell at better price.
Gerry Dennis Healy is a very nice man, he was however a usless chancellor.