EUR/USD down at 1.3105 from a North America close Monday around 1.3120. There has been talk of an iminent Chinese rate hike, which has ratcheted up risk aversion and pressured Asian stocks.
Euro zone data due today:
07:45 GMT: French PPI for October expected +0.4% m/m, +4.1% y/y
08:55 GMT: German unemployment change for November expected -20k from previous -3K; unemployment rate expected unchanged at 7.5%
10:00 GMT: Euro zone CPI estimate for November expected +1.9% y/y
10:00 GMT: Euro zone unemployment rate for October expected 10.1%
10:00 GMT: Italian CPI for November (provisional) expected +0.1% m/m, +1.8% y/y
11:00 GMT: Italian unemployment for October expected 8.4%
It’s month end, so we’ll be listening out for what month end flows are expected to go through.
Talk of barrier option interest at 1.3050 and large at 1.3000. Probably safe to assume stoips parked now far below both levels. On topside sell orders around 1.3150 have so far capped rally attempts. Talk of trailing buy stops through 1.3155.
Despite Asian stockmarket losses financial bookmakers are calling for European stocks to open marginally firmer. FTSE and DAX seen up around 0.4%.
