- Kazakh C.Bank reports bought $2 bln last week to prevent rapid tenge appreciation. Will intervene more if rate goes beyond 147.50 vs USD
- Shanghai share index up 0.6%, fresh 3-month closing high
- Russia C.Bank shifts intervention level to 35.00 rbls/basket after buying $700 mln
- UK business secretary Mandelson says government plans to “lock in” commitment to halve budget deficit
- China’s Wen tells Obama that China doesn’t seek trade surplus with U.S. Wants to take steps towards balancing bilateral trade with U.S.
- BOE MPC split 3 ways on November QE vote, 7 backed £25 bln addition, Miles wanted £40 bln, Dale no change. Discussed changing bank reserve renumeration, but agreed not now but future option
- Thai government”very concerned” about baht volatility but won’t try to stop rise – Deputy PM
- UK CBI manufacturing order book balance -45 in November vs -51 in October, better than expected -47, highest since December 2008
Risk appetite is in OK shape, European stocks have rallied a bit, oil up about a buck. Meanwhile Gold hits another record.
EUR/USD is firmer, up at 1.4960 from an early 1.4885. ACB buying lifted the pairing early, the move accelerating when buy stops triggered through 1.4910 and then 1.4930. The pairing got an additional lift from decent buying of the EUR/GBP cross.
Cable sits at 1.6810, effectively unchanged on the day. Rallies to the 1.6840/50 area have met with ACB sales.
EUR/GBP firmer on day, presently at 8900 from early .8860. UK clearer seen buying decent amounts down around .8880/85 underpinning the cross. The 3-way split vote on QE during the November MPC meet and news that changing bank reserve renumeration was discussed have weighed on sterling a little.
USD/JPY at 89.15 effectively unchanged.
AUD/USD firmer, up at .9320 from early .9285, underpinned by ok risk appetite and expectations of further monetary tightening.
