EUR/USD is trading a little firmer this morning, up at 1.5030 compared to a North American close Friday around 1.5000.
An article in the Financial News, a newspaper affiliated with China’s central bank,will have been noted. There is a call for China to increase it’s reserve holdings of euros and yen, reflecting China’s growing trade with the EU and Japan. On the other side of the coin holdings of US dollars should be reduced.
Meanwhile, general risk appetite will have been bolstered by the news that South Korea’s Q-3 GDP grew an impressive 2.9% q/q, the fastest rate of growth in 7 years.
Overnight there was renewed sovereign buying on the dip below 1.5000, while sell orders are seen layered from 1.5070 up through to barrier option interest at 1.5100. Also talk of small stops lying around 1.5085.
Not much in the way of European economic data today:
07:00 GMT: German Gfk consumer confidence survey for November expected up at +4.5% from previous 4.3%.
