- EU executive says national authorities should get powers to write down senior debt at ailing banks – Draft paper
- Euro zone December services PMI 54.2, down from 55.4 in November, but better than flash estimate of 53.7
- Swiss central bank refuses to touch Irish state bonds – Irish Independent
- For Spain, real estate outlook appears bleak – WSJ
- Portugal sells 500 mln 6-month t-bills. In line with indicative offer. Av yield 3.686% vs previous 2.045%. Cover 2.6 from previous 2.4
- UK December construction PMI 49.1, down from unrevised 51.8, and weaker than median forecast of 50.9
- Euro zone October industrial orders +1.4% m/m, +14.8% y/y vs median forecasts +1.0%, +17.0% respectively
- Euro zone November producer prices +0.3% m/m, +4.5% y/y, pretty much in line with median forecasts of +0.3%, +4.4% respectively
- China C.Bank Gov Zhou: Momentum of economy has strengthened. Sees mounting inflationary pressure
Not a heck of alot of change. EUR/USD down at 1.3235 from early 1.3265. Fleetingly got as low as 1.3210 on news EU executive feels national authorities should have powers to write down senior debt at ailing banks. We’ve seen sporadic buying from ACBs (Korea and China two mentioned in dispatches) which has helped slow the decline.
Cable up at 1.5585 from early 1.5555, but has failed to hold gains above 1.5600 having topped out at 1.5627. BIS notable buyer this morning, along with US investment bank. Poor UK construction PMI (see above) will have weighed a little though.
EUR/GBP down at .8490 from early .8530. Stops tripped though .8520 accelerating the sell-off. Talk of more sell stops down through .8450.
USD/JPY dead, hardly changed at 82.10. Ditto AUD/USD at 1.0015.