- ECB 3 year LTRO result: Allots 489.92 bln euros, much more than Reuters’ median forecast of 310 bln
- Early comment from Unicredit CEO: Sees strong demand from European banks for ECB loans on Wednesday (good man, right on the money)
- BOE minutes: Voted 9-0 to keep rates/QE unchanged in December
- UK November PSNB 15.231 bln, better than Reuters’ median forecast of 17.0 bln
- BOJ’s Shirakawa: Strains in financial markets high
- Japan rating firm JCR: Retains Japan’s Aaa rating with stable outlook. Closely watching Japan’s social security, tax reforms
- Euroland euphoria on Mario Draghi bank rescue – AEP in The Telegraph
Well well, that was lively. EUR/USD sits at 1.3095, marginally lower than the 1.3115 which greeted me first thing. Inbetween though we’ve been as high as 1..3197.
Pairing rallied early, helped by comment from Unicredit CEO (see above), but selling by the BIS around 1.3145 slowed the upside momentum. We dipped briefly only to run into decent Middle Eastern buying. Just ahead of the ECB LTRO announcement at 10:15 GMT we were around 1.3150.
Early reports had sell orders clustered up at 1.3180/00 and they just about held the rally which came with the news ECB had alloted a much stronger than expected 489.92 euros during their LTRO.
Then as periphery/German bond yield spreads started to widen out again, so EUR/USD came quickly lower in illiquid markets.
Personally I think everyone had recent comments from FX Concepts in the back of their mind, but that’s just me. (ps I’ve been hyping you guys the past week or so. where’s that job offer?)
Buy orders now said to be clustered down at 1.3050/65, probably sell stops not far below there (although don’t have confirmation of that second part, just highly educated guess on my part)
USD/JPY sits unchanged at 77.80. You gotta just love it. EUR/JPY down at 101.90 from early 102.o5.
Talk this morning large US name has been busy buying 3-month calls in the cross with a 105.0 expiry. Said to have done up to half a yard of euros. Don’t see it meself, but then what do I know……
That’s me almost done. Merry Christmas to y’all. I’ll be back next Wednesday.
