- Autonomous communities must also commit to reduce deficit
- Govt will send pension reform bill to congress in Q1
- Spain will reduce number of state companies by year end
- Period of intense job destruction has passed
- Will take time to create jobs at the same pace as before
- Believes it will be shown that the Irish banks are solvent
- Govt needs to improve its communications
- May need help from international, European colleagues
- Important to get terms and conditions of any assistance right
EUR/USD has seen acclerated gains. Seems as though breach of 1.3610 was significant (as mentioned in side comments) and we’ve rallied quickly to session high 1.3655, presently at 1.3640.
More stops noted through 1.3660.
Cable has duly tripped stops through 1.5950 rallying quickly to 1.5974 session high, presently at 1.5960. As mentioned earlier more stops seen through 1.5980.
- IMF visit will want to provide reassurance to investors and depositers in the banks
- IMF provides loans not bailouts
- If it’s agreed, IMF will give us a loan
- Believes an IMF loan will be made available and drawn down as necessary
- IMF/ECB/EU would not send teams if they didn’t think they could agree a package
- Expects loan from Europe and IMF will be large
- Loan will run into 10’s of billions of euros
- With market uncertainty high, desireable that banks have more capital available
- There have been substantial outflows of funds from Irish banking secotr since April
- Outflow of corporate deposits has been replaced by funding from ECB
- There has been steady drain of deposits, but the banks have facilities to deal with it
- Ireland will be discussed at ECB governing council meeting
- Interest rate of EFSF is expected to be broadly around usual IMF rate
- Upto government to decide on accepting an IMF/EU loan
- Believes IMF will not find much to disagree with on governments’ fiscal plans
Elsewhere, Irish/German 10-year govt bond yield spread has tightened to 565 bps, 12 bps narrower on day.
Not all in one go though
Interesting little video. Thanks to Chris for bringing it to our attention, thanks very much.
Presently at 1.5940. Jamie yesterday was indentifying 1.5950 as important resistance. Guess there could well be buy stops just above there, although haven’t gotten confirmation of such as yet.
Some important data due today:
09:30 GMT: PSNCR for October expected 6.0 bln; PSNB expected 8.9 bln
09:30 GMT: Retail sales for October expected +0.2% m/m, +1.5% y/y
11:00 GMT: CBI trends, total orders for November expected -24 from -28.
Founded in 2008, ForexLive.com is the premier forex trading news site offering interesting commentary, opinion and analysis for true FX trading professionals. Get the latest breaking foreign exchange trade news and current updates from active traders daily. ForexLive.com blog posts feature leading edge technical analysis charting tips, forex analysis, and currency pair trading tutorials. Find out how to take advantage of swings in global foreign exchange markets and see our real-time forex news analysis and reactions to central bank news, economic indicators and world events.
Our authors have years of experience in financial markets and provide diverse, thought-provoking updates relating to news about global macro events and the worldwide forex economic calendar, with frequently updated content that is educational for traders at all levels from beginner to novice that can help traders make better decisions about forex trading. Our forex news focuses on G10 events, macroeconomic indicators, major equities indexes, treasury and bond yields from around the world, politics as it relates to forex trading and news from the FOMC as well as global central banks in, Europe and Asia.