- Spain EconMin: Spain will only need to issue 30-31 bln of new debt in 2011
- Spain sells 2468 mln euros of 3 year bond (1750-2750 mln target)
- Spain, Italy seek action – WSJ
- EU leaders talking about need for a summit “soon”, hinges on signal from ECB meeting – Spanish Govt source
- Bank of Spain heard buying bunds
- German EconMin Bruederle: More liquidity alone won’t resolve problems of euro zone. ECB must remain independent
- German EconMin Bruederle: Good chances that Portugal and Spain will manage without tapping euro rescue mechanism
- Spain PM Zapatero: Spain will not have to tap any EU fund – CNBC interview
- IMF chief: IMF happy to provide financial, technical support to member states if needed
- UK November construction PMI 51.8 vs 51.6 in October, better than median forecast of 51.3
It’s been a busy enough morning action-wise, but when all said and done it’s been pretty inconclusive. Market waits to see what rabbits JCT pulls out of his hat.
EUR/USD up at 1.3160 from early 1.3120, but some way from session high 1.3217. Decent Middle Eastern/Asian sovereign buy interest touted in 1.3130/1.3100 area and it provided downside support.
Sell orders, including European corporate interest, were well noted in 1.3180/00 area and it looked like that would prove a durable cap on the topside. However a decent-enough Spanish auction and strong buying from a UK clearer helped euro bulls hurdle said interest on way to 1.3217 high.
Reports had stops lined up through 1.3220 but they never got tripped. Asian sovereign selling helped subsequent downside correction. Just like yesterday we’ve seen Asian sovereign interest on both sides of the ball. ECB now awaited.
USD/JPY marginally firmer, up at 84.20 from early 84.05. 10-year treasuries are trading around the psychological 3% level this morning and this is helping support the pairing. Probably a little surprising USD/JPY isn’t infact a little higher.
Cable a touch easier at 1.5595 from early 1.5610. Strong buying of the EUR/GBP cross has helped curtail cable’s gains. Cross up at .8440 from early .8400. Sell orders up around .8450 have so far capped move.
