- ECB’s Bini Smaghi: Big uncertainty on intensity of recovery in months, years to come
- Shanghai share index closes down 0.2%
- French EconMin speaking on Greek debt crisis “We are in a monetary zone of complete solidarity.”
- Greek PM: There is no possibility of Greece defaulting on its debt
- Japan PM Hatoyama: Gave instructions to try to keep new JGB issuance below Y44 trln next fiscal year
- UK November PPI input prices +0.1% m/m, +4.0%, output prices +0.2% m/m, +2.9% y/y
- UK PM Brown: “Completely wrong” to suggest he overruled Chancellor Darling on pre-budget details
- Ladbrokes, biggest UK bookmakers, have stopped taking bets on March 25th general election date
It’s been a slow morning. Anyone would think Christmas was just round the corner. The euro has seen some across the board strength, underpinned by comments from the French EconMin and Greek Prime Minister (see above) which have helped ease Greece default fears a little.
EUR/USD started around 1.4730 and did little in early trade. The BIS was reported to have sold around 1.4735 but their action had little or no impact on proceedings. The aforementioned comments from Lagarde and Papandreou finally gave the euro a boost and stops were triggered on move through 1.4745. We’ve been to a session high 1.4773, presently at 1.4763. Technical resistance noted at 1.4781.
Cable sits at 1.6285, marginally easier from an early 1.6310. For once cable has had a quiet morning. Talk of buy orders down at 1.6260, with stops seen through 1.6250.
EUR/GBP is firmer, up at .9065 from an early .9030. Technical support at .9020 has provided robust underpinning and strong buying from a German name noted. Sell orders now seen at .9070/80 with stops gathered just above there.
USD/JPY at 88.90 unchanged on the day. Japanese exporter sell interest at 89.00 has helped cap the topside. Stops seen on move through 89.05. Talk of 89.00 option expiry at todays New York cut. Euro strength has seen EUR/JPY rally, up at 131.20 from an early 130.85.
