- German Chancellor Merkel: Germany can’t thrive if Europe suffers (speech to parliament)
- ECB’s Draghi: Sees significant risk of euro area growth weakening, high degree of uncertainty
- EU Commission: EU summit not to detail all aspects of agreements with numbers
- Japan FinMin: Don’t think G20 communique’s wording on fx prevents Japan from intervening in fx market. Have told G20 meeting Japan sees USD/JPY level of 76, 77 as inappropriate
- SOc Gen CEO: Could turn to shareholders if needs more capital, no need for state funds
- Italian banking association head: Italian banks able to handle funding needs even at height of debt crisis
- Greek FinMin told banks 50% haircut likely – Kathimerini newspaper
- European Financial Stability Fund chief Regling to visit Beijing on Friday
- Trichet: Countries cut off from markets must be helped
Waiting for Godot…..or rather the EU summit. Not too much going on when all said and done.
EUR/USD up at 1.3930 from early 1.3915, having been as high as 1.3952. Middle Eastern buying again helped lift the pairing early, but it wasn’t sustained. Sell orders up at 1.3950/60 have been well-documented in recent sessions and they help the topside beautifully (well not if you were a euro bull I guess)
Russia was a seller around the highs and more noticeably a certain US investment bank. Stops remain through 1.3960. Barrier option interest at 1.4000.
Cable down at 1.5990 from early 1.6035. Yesterday we reported sell orders layered from 1.6020 up to 1.6060 and they’ve proven sticky for the cable bulls, the recent rally fizzling out around 1.6040. UK clearer with strong far eastern associations noticeable seller of the pairing this morning.
USD/JPY little changed on day at 75.90, recovering from swoon which saw new historic low of 75.72 posted. Talk of Kampo lined up on the bid at 75.70 will have lent some tenuous support.
USD/CHF down at .8740 from early .8780, the major Swiss commercial bank notable seller in early trade. EUR/CHF cross down at 1.2178 from early 1.2221, having been as low as 1.2155 as sell stops tripped just below 1.2200 barrier interest.
Little timetable for EU events:
15:15 GMT-15:45 GMT: Arrival of members of the European Council
16:00 GMT-17:00 GMT: 27 EU heads of state meet
17:15 GMT: 17 leaders of euro-zone countries meet
