- Shanghai share index ends down 0.2%, breaking 3 day winning streak
- French Q3 ILO jobless rate 9.5%, mainland France jobless 9.1%
- Euro zone November services PMI (final) 53.0 vs 52.6 in October. Little lower than 53.2 flash estimate/median forecasts, but still 23 month high. Composite PMI 53.7, up from 53.0 in October. Unchanged from flash estimate/median forecast. 2 year high
- UK November services PMI 56.6, down from 56.9 in October and worse than median forecast of 57.0
- Euro zone Q3 GDP confirmed at +0.4% q/q, -4.1% y/y
- Euro zone October retail sales flat m/m, -1.9% y/y vs median forecasts +0.2%, -2.4% respectively
Euro has had a good morning ahead of the ECB rate decision. EUR/USD is up at 1.5125 from an early 1.5085, EUR/JPY up at 132.90 from around 132.40, EUR/GBP up at .9085 from around .9040.
EUR/USD has been as high as 1.5134, the recent high of 1.5144 looming large. Talk of decent sell orders at 1.5140/50 ahead of various 1.5150 option interest. ECB awaited.
Cable has had a rollercoaster ride again today. Never a dull moment. Started around 1.6675, rallied quickly to session high 1.6722 as stops tripped on move through 1.6700. Decent sales by UK clearer above 1.6700 however weighed on the pairing and we were soon back below 1.6700.
The pairing stood around 1.6660/65 on the release of disappointing UK services PMI and traded lower to test 1.6635 technical support, which has so far managed to hold. Subsequent rallies have been pretty stunted though and we’re presently at 1.6650. Middle Eastern names and the Reserve Bank of India have also been notable sellers today.
EUR/GBP has traded firmer. Having opened around .9040 the cross has been as high as 9087, presently at .9082. Sales by big German name above .9080 have helped slow the advance.
USD/JPY sits at 87.85, all but unchanged during the morning session. Talk of Japanese exporters up at 87.90/00 has so far capped the recent rally. Talk of 88.00 option expiry today.
USD/CHF sits at .9966, the session low, having opened up around .9990. The market is aware that .9960 is the level at which the SNB started its last intervention on EBS and seems loath so far to tempt fate.
