• Shanghai share index up 0.5%
  • Japan MOF Noda: No change in plan to keep new JGB issuance below Y44 trln in compiling 2010/2011 budget
  • UK Conservatives Osbourne says PBR won’t soothe fears of UK losing triple A credit rating. Labour deficit reduction plan kicks in far too late
  • French October industry output -0.8% m/m, weaker than median forecast of +0.7%
  • Swiss National Bank holds target libor range unchanged at 0.00-0.75%, aims for 0.25%
  • Eurogroup’s Juncker: Excludes possibility of Greek state bankruptcy, EU help therefore not needed. Greek budget situation very difficult, government to take consolidation steps
  • Italy October industrial output +0.5% m/m, weaker than median forecast of +1.5%
  • ECB’s Nowotny: Further euro appreciation vs dollar would have a negative effect on euro zone economy. Recovery in euro zone weaker than in the U.S.
  • George Soros: Sure Greece will not be allowed to default
  • Bank of England leaves rates steady at 0.5%, QE at £200 bln. As expected

The JPY and USD have given a little ground today, but when all said and done it’s been pretty orderly fare.

EUR/USD sits at 1.4735, up marginally from an early 1.4710 in Europe. Russia was a notable seller early knocking the pairing fleetingly below 1.4700. There the USD bulls quickly ran into decent euro buying interest from a major Asian sovereign and that was that. We’ve seen a subsequent slow grind higher, but we’re ostensibly narrow range bound looking for direction.

Cable is up on the day, presently at 1.6315 from an early 1.6255, having been up to test technical resistance at 1.6345/50. A major Asian sovereign and Middle Eastern names were seen supporting the pairing early. There has also been decent buying interest from a UK corporate at the 09:00, 10:00 and 11:00 morning fixes. The interest is apparently related to dividend payments.

USD/JPY is firmer, up at 88.35 from an early 87.95. There was a rumour doing the rounds early that the Bank of Japan had left a “call level” at 87.50, infering that the bank might be looking to intervene if the pairing slipped to said level. Sounds like a load of old cobblers to me, but there we go. Sell orders up at 88.40/50 have so far capped the upside.

AUD/USD up at .9165 from an early .9125. Comments by well-respected RBA watcher Terry McCrann have been noted. He has said “The RBA might have to come back in February and really whack us with some big rate rises.”