European morning wrap: Quiet European session so far, majors narrow rangebound
- ECB’s Nowotny: Greek debt deal better solution than any alternatives
- ECB’s Demetriades: I’m not ruling out rate cut in general. If circumstances demand, ECB will take new measures – Market News interview
- Bank of England’s Bean: UK economy ‘growing weakly at best’
- Spain October retail sales -9.7% y/y, better than Reuter’s median forecast of -11.5%
- DIW institute cuts German Q4 GDP forecast, to flat q/q from previous +0.2%
- Francois Hollande shows true colours with threat to nationalise ArcelorMittal – AEP at The Telegraph
EUR/USD sits at 1.2922, a whole 3 pips lower than the 1.2925 which greeted me first thing. Kinda sums it up
Market not overly convinced by latest Greek debt deal and worried about progress, or lack there-of, in US budget negotiations. This is fuelling risk aversion and pressuring EUR/USD. However sovereign buying has been noted on dips toward 1.2900 with 1.2911 the session low.
There was a half-hearted rally attempt, but Russian selling in the 1.2930’s helped cap that pretty quickly.
USD/JPY and EUR/JPY effectively unchanged at 81.85 and 105.70 respectively. Talk of sell stops through 81.70 and 105.50.
Cable has been extremely narrow rangebound eitherside of psychological 1.6000. Talk of decent-sized 1.6000 option expiry at todays’ New York cut.