- German Gfk December consumer sentiment indicator down at 3.7 from 4.0 in November, worse than median forecast looking for unchanged 4.0
- Shanghai share index ends up provisional 2.1%
- Russian central bank’s Ulyukayev: Will gradually increase volume of interventions on forex market
- Italy November consumer morale rises to 112.8 from 111.7 in October, better than median forecast of unchanged 111.7
- Italy September retail sales s.a. -0.1% m/m, -1.6% y/y vs median forecasts of +0.1%, -2.9% respectively
- UK Q3 GDP revised to -0.3% q/q, -5.1% y/y, in line with median forecasts. Had been talk/rumour this morning of an improvement to -0.1% q/q
- Russia Cbank: Preparing to invest reserves in canadian dollars
- Russian CBank: Brazil interested in bilateral trade settlement in national currencies with Russia
The greenback has been hit hard across the board. The major crosses are showing hardly any net change, it’s all been about the dollar. There hasn’t been anything particularly new driving trading, more a general slow build-up of pressure finally bursting the dam.
EUR/USD sits up at 1.5070 having started out around 1.4985 and having been as high as 1.5096. An ACB attempted to hold back the tide selling up around 1.5010/20 but couldn’t stop stops above 1.5020 from being triggered. Middle Eastern names were mentioned as good early buyers and then a US investment bank came in buying aggressively around 1.5025.
We halted for awhile around 1.5045/50, but it proved merely temporary and eventually US earlybirds helped push on to session high 1.5096. Next hurdle to topside is well-touted 1.5100 barrier option interest.
USD/JPY sits at 87.70 having started around 88.30 and having been as low at 87.57. There was talk of 88.00 barrier option interest with buy orders lined up just ahead and expectations Kampo would be among those buying around 88.00.
Suffice it to say Kampo didn’t turn up (well we had no reports of them there) and lumpy stops just below 88.00 were triggered bringing about the session low 87.57 in double-quick time. Kampo is said to have been a buyer down around 87.60.
USD/CHF sits at 1.0010 having started around 1.0075 and been as low as .9994. The BIS came in buying at 1.0040/45 and this lent some support but it proved only temporary. Eventually the USD bears managed a fleeting breach of the psychological 1.0000 line , but reported buy orders at .9995/00 have just about managed to hold the line, so far.
There have also been reports of the BIS checking prices in EUR/CHF when it was around 1.5080/85.
USD/CAD sits at 1.0470 from an early 1.0555, having been as low as 1.0454. The Russian central bank has come out this morning stating it is preparing to invest reserves in canadian dollars.
Cable sits at 1.6705 having started around 1.6610 and having been as high as 1.6745.