• Spain mulling requesting a credit line from the IMF alone, as an alternative to a European bailout – El Confidential
  • Spain EconSec: Not studying asking help from the IMF
  • Japan PM: Hope BOJ to continue powerful monetary easing
  • Slovak PM Fico: Not keen to give Greece more time or more debt writedowns to solve its’ problems
  • Rehn: Work is ongoing on Greek debt sustainability
  • More Rehn: ECB actions have helped ease market tensions
  • Even more Rehn: EU part in Greek bailout isn’t possible without IMF funds. EU Commission hasn’t received any bailout request from Spain, but is ready to draw up a program if it’s called upon
  • People’s Party lawmaker: Spain would default without Rajoy’s austerity
  • ECB’s Coene: Part of Greek debt may be eventually forgiven – De Standaard
  • ECB’s Coene: Spain must urgently seek bailout
  • ECB’s Asmussen: The euro is irreversible
  • Euro zone Q3 GDP -0.1% q/q, -0.6% y/y, in line with median forecasts
  • Euro zone October inflation +0.2% m/m, +2.5% y/y, in line with median forecasts
  • Dutch October jobless rate rises to 6.8% from 6.6% in September
  • UK October retail sales inc fuel -0.8% m/m, demonstrably weaker than Reuter’s median forecast of flat. Steepest fall since April
  • UK would lose AAA status if it enters triple-dip recession, says Moody’s
  • Europeans vent their anger as cuts bite – The Telegraph

USD/JPY up at 81.15 from early 80.90, having been as high as 81.24. EUR/JPY up at 103.60 from early 103.10. Main driving force behind yen weakness remains expectation of accelerated BOJ monetary stimulus once new Abe-led Japanese government takes power. Barrier option at 81.00 was taken out along the way and there is talk of further barrier option interest at 81.50. Sell orders seen clustered 81.40/50.

Technical resistance of note at 81.45 and 81.50. 81.45 is the April 27 high and 81.50 the 61.8% fibbo retracement of 15th March-September 13th sell off.

EUR/USD marginally firmer at 1.2765 from early 1.2740, but still narrow rangebound. The improvement has as much to do with EUR/JPY buying as anything.

Buy orders seen clustered 1.2700/10, light sell stops below. Sell orders seen clustered 1.2775/85, light buy stops above.

Cable effectively unchanged at 1.5845.

AUD/USD down at 1.0330 from early 1.0360 as market pares short possies in EUR/AUD.