Opening Levels as at 12.00am:- EUR/USD 1.4532/36 USD/JPY 89.42/45 GBP/USD 1.6243/48 USD/CHF 1.0409/14 USD/CAD 1.0610/14 AUD/USD 0.8986/90 NZD/USD 0.7178/82 EUR/JPY 129.98/02 EUR/GBP 0.8945/48 Dollar Index 77.27

Economic Data

  • French flash PMI Manufacturing for December unchanged at 54.4 (expectations 54.5), Services fell to 59.3 from 60.9 (expectations 60.0) and New Business rose to 59.8 from 59.2 in November.
  • German flash PMI Manufacturing for December 53.1 from 52.4 (expectations 52.6), Services 53.1 from 51.4 (expectations 51.8), Business Expectations 52.6 from 56.3 and Composite Growth 54.9 from 53.6.
  • Swedish Riksbank left Swedish rates unchanged, as expected, at 0.25 %.
  • Eurozone flash PMI Manufacturing for December 51.6 from 51.5 (expectations51.2). Services 53.7 from 53.2 (expectations 53.0), New Business 53.0 from 51.2 and Composite Growth 54.2 from 53.9 (expectations 53.7)
  • Italian EU Harmonised CPI in November +0.1 % m/m from +0.4 % and +0.8 % y/y from +0.3 %
  • UK Unemployment Claimant Count -6,300 in November from +5,900 ( revised from +12,900) versus expectations of +13,300, the first fall in the count since Feb. 2008. Average earnings +1.5 % y/y from 3 months to Oct. versus expectations +1.2 %. October alone +1.6 % y/y
  • Eurozone CPI in November +0.1 % m/m from +0.2 % (expectations +0.2 %) and +0.5 % y/y from -0.1 % (expectations +0.6%)
  • Italian Global Trade balance in October – Euro 0.710 billion from – Euro 0.911 billion (revised from – Euro 0.897 billion)

Comments/News

  • China said that it will keep economic policies stable next year because of weak export demand, underscoring the nation’s unwillingness to let the Yuan appreciate against the dollar. Exports will take a considerable time to recover to pre-2008 levels.
  • In the last of its Long Term Refinancing Operations (LTRO) the ECB lent Euros 93.937 billion to banks in 12 month funds. This time there were 224 bidders compared to 589 in September.

Currencies

  • Euro-dollar started off the session quietly around 1.4535 before the dollar was sold off on the Asian close on intra day profit taking. The Euro climbed to 1.4560 before it was sold off on the European opening as traders digested the earlier price action. Better than expected European PMI data saw the move reversed with Euro climbing steadily to its session high of 1.4570.
  • Sterling traded between 1.6240 and 1.6265 before better than expected unemployment data and the weakening in the dollar gave the currency a boost to it’s session high of 1.6355.
  • Closing levels as at 7.45 am:- EUR/USD 1.4575/78 USD/JPY 89.55/58 GBP/USD 1.6365/69 USD/CHF 1.0372/76 USD/CAD 1.0588/92 AUD/USD 0.9006/10 NZD/USD 0.7207/12 EUR/JPY 130.56/60 EUR/GBP 0.8906/11

Ranges

  • EUR / USD 1.4510 – 1.4582
  • USD / JPY 89.37 – 89-87
  • GBP / USD 1.6230 – 1.6370
  • USD / CHF 1.0367 – 1.0424
  • AUD / USD 0.8955 – 0.9015
  • NZD / USD 0.7152 – 0.7210
  • EUR / GBP 89.00 – 89.55
  • EUR / YEN 129.97 – 130.77

Stock Markets

  • Nikkei closed at 10,177-41 higher by 93-03 (+0.93 %)
  • Hang Seng closed at 21,611-74 lower by 202-18 (-0.93 %)
  • Kospi closed at 1,664-24 lower by 1-61 (-0.10 %)
  • Shanghai Composite Index closed at 3,255-21 lower by 19-25 (-0.59 %)
  • FTSE 100 currently at 5,296-11 higher by 10-34 (+0.20 %)
  • CAC 40 currently at 3,867-55 higher by 33-46 (+0.87 %)
  • DAX 30 currently at 5,877-60 higher by 66-20 (+1.14 %)

Enjoy the rest of your day and in case I don’t get the opportunity Happy Holidays to all