- EU sources: Several EU states are urging Germany to drop demands for treaty changes
- German FinMin: Budgets of member states that do not meet requirements should be rejected
- ECB’s Orphanides: Cyprus economy showing intense signs of recession
- ECB’s Orphanides: Greek haircut decision was a terrible mistake. Decision to impair value of Greek bonds triggered contagion
- Euro zone November final services PMI 47.5, slightly below flash 47.8
- Euro zone sentix index drops 2.8 pts to -24.0 in December, weaker than median forecast of -21.0. Fifth decline in a row
- UK November services PMI up to 52.1 from 51.3 in October, better than median forecast of 50.5
- Euro zone October retail sales +0.4% m/m, -0.4% y/y vs Reuters’ median forecasts +0.1% for both
- Greek PM Papademos: Sure that Greece can count on US support in a debt crisis
- US VP Biden: US stands ready to help Greece in anyway it can
- Fiskalunion is worst of all worlds for Europe – AEP at The Telegraph
- Fed may give loans to IMF – Die Welt
- Get ready for the supercomputer that can predict the future (even the next recession) – Daily Mail
Waiting for Godot, or rather Merkel and Sarkozy who are busy plotting the future of the euro zone somewhere in Paris.
EUR/USD up at 1.3440 from early 1.3405, having been as high as 1.3460. Risk sentiment generally good this morning. Selling out of the Middle East capped the gains.
USD/JPY about 10 pips firmer on the day at 78.05, underpinned by Middle Eastern buying. Risk on backdrop and higher US treassury yields helping support pairing.
Cable up at 1.5645 from early 1.5600. Better than expected UK services PMI (see above) have lent the pairing support. Sources note sell orders clustered up at 1.5665/75 and they’ve so far capped gains.
AUD/USD up at 1.0255 from early 1.0215. Risk on innit
