- Moodys says UK and US debt ratings slightly weaker
- UK November industrial output slightly weaker than expected
- UK home prices rise faster than expected
- Dubai stocks fall hard amid more worries of difficulties in restructuring debt
- Dubai finance chief says crisis exaggerated, credit market cooperating
- Bank of France sees Q4 growth slightly above expectations
Sterling has again been the most volatile of the major currencies during the European morning session. The Moody’s report surfaced in very early European trade and this led to a sharp spike higher in EUR/GBP and a sell-off in GBP/JPY. Respective resistance at .9070 and support at 145.35 held initially and there were some volatile swings in illiquid trade, but the poorer-than-expected industrial production numbers ensured that the pound suffered another bout of selling. Ranges: Cable 1.6325/1.6460, EUR/GBP .9020/94 and GBP/JPY 144.65/146.30
The EUR/USD fell below 1.4800, dragged lower by the falling cable, but it quickly recovered as traders realised that there were cross plays underway. Option support is again tipped at 1.4750, part of yet another dnt structure. Range: 1.4783/1.4864.
The JPY again benefitted by default as traders exited their ‘risk’ trades and dumped dollars against everything bar the sterling. Range: 88.55/89.17.
Markets: Most of the major indices are currently flat to slightly higher. Gold is also flat on the day at $1164/oz. Oil is +0.25% at $74.15/bbl.
