- Exact details of the Irish bailout package announced
- No guarantee that details will pass through Irish parliament on December 7th
- ECB’s Noyer was busy on the newswires saying firstly that countries shouldn’t interfere in each other’s monetary policy decisions
- He also defended the EUR saying EU financing was in a better state than the US
- German EconMin says that no more countries will need help
- Australian Q3 business inventories disappointed at -0.8% QoQ
- Japanese retail sales fell by o.2% in October, the first fall in 10 months
- No more major developments on Korean Peninsula tensions
- Regionals bourses +0.3% on average, Gold steady at $1365/oz
- On the order front, solid offers seen at 1.0060 and 84.20 in USD/CHF and USD/JPY respectively
The EUR had a typically volatile session in illiquid trading conditions. EUR/USD closed in NY at 1.3245 on Friday but opened higher after the Irish bailout details emerged. The high in early interbank trade was 1.3345 but the pair was back below 1.3300 when the general market opened. Nobody seemed overly impressed with the package and the EUR/USD continued to fall eventually breaking below Friday’s low at 1.3200. There were a number of significant bids below there and this introduced some much needed liquidity, allowing the market to stabilise. The EUR crosses were also very volatile. Ranges: EUR/USD 1.3186/1.3345, EUR/CHF 1.3214/1.3348
Cable, USD/CHF and USD/JPY were all relatively stable with the EUR crosses bearing the brunt of volatility. USD/JPY couldn’t break through corporate offers at 84.20 but has also not dipped much. Ranges: USD/JPY 83.97/84.19, Cable 1.5562/1.5608, EUR/GBP .8470/.8522, EUR/JPY 110.91/111.75
AUD/USD suffered on all fronts today with the Korean situation undermining the entire region and also the disappointing economic data. Ranges: AUD/USD .9586/.9687
