EUR/USD sits presently at 1.4980, effectively where it closed out Tuesday in North America. We’re presently stuck trading a well-defined range, with 1.4940-1.5020 its parameters. There has been ongoing talk of buy orders down at 1.4940/50, China sell orders up at 1.5020/30. Even if we break out the bottom end, then there are said to be further buy orders lined up at 1.4920.
Risk appetite remains in pretty decent shape and the market would appear to be ostensibly bullish the EUR/USD pairing. This appetite will have been underpinned by some decent Chinese economic data released overnight.
Chinese October industrial production rose +16.1% y/y, retail sales +16.2%. Meanwhile China’s October trade surplus came in at $24 bln.
Elsewhere U.S. Treasury Secretary Geithner told reporters in Tokyo that a strong dollar is in the U.S.A.’s interest and that the government recognises the importance it plays in the global system. He also reiterated his pledge to “bring our fiscal position back to a sustainable balance.”
No major Euro zone data for release today. European stocks look set to open a little firmer.