• Swiss consumer sentiment index rose to -23 points in January survey from -27 points in October, better than the median forecast of -40.
  • EU’s McCreevy: Weak sterling difficult for EU. Some countries very upset.
  • UK construction orders fell 9% in 3 months to December compared to the previous 3 months.
  • ECB Bulletin: Inflation pressures easing as the euro-zone economy slows significantly.
  • ECB Bulletin: Implied forex volatility at unprecedented levels recently.
  • Euro-zone Dec industrial output -2.6% month on month, -12% year on year. Worse than expected.
  • Busy morning with risk aversion to the fore. Likes of JPY and USD beneficiaries, while GBP and EUR took it on the chin. Horrible euro-zone industrial output data didn’t help euro’s cause. USD/JPY sell-off however slowed by talk of “strong bid” down at 89.80. Rumour has it that it is/was a large Asian central bank who is an aggressive player in the forex markets.