- Merkel advisor doesn’t rule out euro breakup – Bloomberg
- Italian auctions receive lukewarm reception
- ECB seen buying small amounts of Italian bonds in secondary market after auctions
- Italy PM Monti: Growth strategy won’t involve great use of public spending
- More Monti: Supports central banks’ independence
- ECB’s Coene: Belgium entering “mild” recession. ECB not planning to change bond programme “at the moment”
- ECB’s Nowotny: Euro is secure and reliable currency
- Italy December business morale index falls to 92.5 from revised 94.0 in November (prev 94.4), weaker than Reuters’ median forecast of 93.6 and lowest read since December 2009
- Euro zone November M3 annual growth +2.0%, weaker than Reuters’ median forecast of +2.5%
Not alot in the way of risk appetite out there.
EUR/USD down at 1.2865 from early 1.2925, having been as low as 1.2858 so far. Italian auction results got a lukewarm reception (having to pay 6.98% for 10 year money didn’t go down well), piling further pressure on the beleaguered single currency.
Cable down at 1.5370 from early 1.5460, having been down as low as 1.5360. EUR/GBP unchanged around .8365, having slipped back from earlier rally which reached session high .8397. The rallyette could have been related to Bundesbank month-end buying, but can’t confirm.
USD/JPY remains narrow rangebound, effectively unchanged at 77.80.
