• ECB buys Portuguese bonds
  • Portuguese storm gathers as EU leaders fight over Greece – AEP at The Telegraph
  • German December prelim retail sales -1.4% m/m, -0.9% y/y, demonstrably weaker than Reuter’s median forecasts +0.9%, +1.4% respectively
  • German January s.a jobless total falls -34k to 2.849 mln, better than median forecast -5k. Jobless rate fell to 6.7% from previous 6.8%, better than median forecast of unchanged 6.8%
  • Italian December adj jobless rises to 8.9%, up from revised 8.8% (prev 8.6%) in November, worse than median forecast 8.7%
  • Euro zone December unemployment 10.4%, unchanged from revised 10.4% (prev 10.3%) in November. As expected
  • French December consumer spending -0.7% m/m, weaker than Reuter’s median forecast of +0.2%
  • UK December mortgage approvals 52,939, up from 52,628 in November, but weaker than median forecast of 53,700. Still, highest read since December 2009
  • ECB Nowotny: “Of course” risk in ECB’s Greek bond holdings (doesn’t miss a trick)

Early talk had general USD month-end sales in the offing, especially against the Canadian dollar and sterling.

USD/CAD is down at .9975 from early 1.0005, so that worked out.

GBP/USD is up at 1.5780 from early 1.5735, so that worked out too.

Jolly hockey sticks, what…. Bang on!!!

EUR/USD meanwhile has been a dud, struggling for meaningful direction. At 1.3195 presently we’re effectively unchanged on the day. Talk of trailing sell stops now through 1.3160. On topside, sell orders seen clustered up at 1.3230/50, buy stops above there.

USD/JPY up at 76.38 from early 76.20. Rumours in early Europe had BOJ checking rates and Japanese banks being told to stay late. The old ones are always the best

;)