- German Gfk January consumer sentiment indicator 3.3, down from revised 3.6 in December (prev 3.7) and below median forecast of 3.5
- Shanghai share index ends down 2.3%, lowest close in 7 weeks
- Swiss trade balance +2144 mln CHF in November vs revised 2437 mln in October
- French November producer prices +0.2% m/m vs median forecast +0.3%
- BOE’s Posen: Working on “plan B” to restore flows of credit if QE fails – Daily Mail interview
- Moody’s lowers Greece to A2 from A1, outlook negative
- Dutch December business confidence -8.6 vs -5.6 in November – CBS
- Japan Strategy Min Kan: BOJ new funding measures having impact, dollar back around 90 yen. BOJ’s statement that they will not tolerate deflation shows BOJ will have active policy
- UK Q3 GDP (final) -0.2% q/q, -5.1% y/y. Disappointing vs median forecasts -0.1%, -4.9% respectively
- German Ifo Institute survey shows more firms find credit conditions restrictive in December than November, particularly in construction. Could block recovery
- OPEC agrees to leave ouptut unchanged. To meet next March 17
Well it’s nearly Christmas, so I don’t suppose we can really expect too much in the way of price volatility. This morning had it’s moments, with sterling weakness probably the major feature.
Cable started around 1.6055. Moved higher initially posting a session high 1.6099, but was already back down around 1.6035/40 just prior to the release of the Q3 GDP revision. The data (see above) disappointed and cable posted a 1.5997 session low eventually post release, before marginal recovery to 1.6010 at writing.
EUR/GBP is up at .8930 from an early .8897.
EUR/USD sits at 1.4305, marginally firmer on the day having started out around 1.4295. But we’re some way from session high 1.4332. Moody’s downgrade of Greece (see above) took the wind out of the euro bull’s sails somewhat.
USD/JPY at 91.30 is effectively unchanged on the day. Talk of bids at 91.00/10, stops just below 91.00. Sell orders 91.50.60, stops through 91.65.
