• Fitch cuts Portugal’s sovereign rating to BB+ from BBB-
  • German Nov IFO Business sentiment 106.6 from 106.4 in Oct
  • IFO’s Abberger: Debt crisis hasn’t hit Germany’s real economy yet
  • Italian Nov Consumer confidence rises to 96.5 from 93.3 in Oct
  • German Q3 real sa GDP +0.5% q/q, +2.5% y/y. unchanged from first estimates
  • Finland’s FinMin Urpilainen : Common eurobonds could damage investors confidence
  • UK Q3 GDP +0.5% q/q, +0.5% y/y in line with forecasts
  • BOE’s Miles: UK downturn one of the most serious in 100 years
  • BOE’s Broadbent: UK clearly has a risk of recession,economic slack set to grow, no further commitment to QE
  • BUBA’s Nagel: German Bund will stay as benchmark bond
  • Dexia taps Belgian National Bank’s liquidity assistance facility, and others in Spain, Italy and France. Will continue until guarantee scheme in place
  • EU’s Rehn: Debt crisis likely to continue for some time
  • RBA Governor Stevens: Policy makers need discretion in deciding interest rates

A pretty dull session with some stronger IFO and Italian data and Middle Eastern buying leading a bounce in the EUR/USD up to 1.3412, but there was little interest to break out of the NY trading range from yesterday, and we slid back to opening levels around 1.3370 again before grinding higher again towards 1.3390 .

Portugal newly found junk status courtesy of Fitch, failed to have any significant impact late morning.

There are bids now below at 1.3330 trailing down to a barrier at 1.3300. Offers sit up at 1.3410/15 with buy stops up through 1.3420, ahead of more offers up at 1.3450/60

Cable traded 1.5503-1.5566 slipping back late morning as EUR/GBP built higher, but was unmoved by the largely on target GDP data. Cable bids lie at 1.5500 with sell stops down through 1.5490/95, offers are sitting up at 1.5580.

EUR/GBP clawed its way up to 0.8620 from 0.8597, but appears to have found some fairly solid tech res at 0.8620/25

USD/JPY traded 77.06-24 and EUR/JPY 103.04-46

AUD/USD shadowed the EUR/USD up to 0.9786 from 0.9720 taking outs some stops through 0.9765, but looks hemmed in between 2 large option strikes today at 0.9750 and 0.9800.

European equities were largely in the black around 1-1.5% up on the day with WTI Crude steady between 96.30/80 and Gold holding between 1694-1702