- IMF’s Lagarde: There are reasons to be more upbeat about Europe prospects. Europe may avoid recession this year – Business Day
- German November s.a trade surplus 15.1 bln, much stronger than Reuters’ median forecast of 12.0 bln. Exports up +2.5%, imports -0.4%
- French November trade deficit -4.4 bln, better than Reuter’s median forecast of -6.0 bln. October revised upward to -5.6 bln from previous -6.248 bln
- Euro zone sentix index rises to -21 in January from -24 in December, better than Reuters’ median forecast of -24.2
- Troika asks Greece to cut wages for new loans – Ta Nea
- German FinMin Schaeuble: Urges faster progress on Greek negotiations with the IMF
- Italy needs bigger European aid fund – Roubini tells Repubblica
- Soros: Eurozone crisis more serious than the 2008 crisis – Conference in Bangalore, India
- Swiss unadj unemployment 3.3% in December, weaker than median forecast of 3.2%. Seasonally adjusted 3.1%, as expected
Euro has seen some across the board improvement this morning, the proximity of the Merkozy meeting in Berlin no doubt prompting some euro bears to trim possies. Optimistic comments from Lagarde, better than expected EU data (German/French trade, sentix index) and generally narrower periphery/German govt bond yield spreads will have all lent single currency support.
EUR/USD up at 1.2780 from early 1.2705, having been as high as 1.2785. Asian sovereign buying noted early, getting the ball rolling. Real money duly seen selling above 1.2770, helping slow the upside progress.
EUR/JPY up at 98.15 from early 97.75.
Cable up at 1.5450 from early 1.5420, having been as high as 1.5458. Pairing supported by talk of demand from UK clearer with strong Far Eastern ties. Demand said to be related to dividend payments.
EUR/GBP up at .8265 from early .8235.
USD/CHF down at .9510 from .9555. EUR/CHF up marginally at 1.2155 from 1.2140. Still getting reports of SNB interest lined up down at 1.2125, which is helping underpin the cross.
Still talk of sell stops gathered in 1.2115/20 area before 1.2100 barrier option interest.
