- EU debt crisis and German opposition to deeper ECB involvement continues to weigh on the EUR
- Ratings agencies downgrade Portugal and Hungary
- ECB Gonzalez-Paramo: EU bonds will exist at some time, but timing not right now
- Bank chief warns of GFC mark II
- RBA’s Stevens calls on EU leaders to do more
- Money market conditions starting to freeze in aftermath of failed Bund auction
- China to keep monetary policy tight through 2012
- Japan’s core CPI +0.1% YoY; CSPI +0.1% YoY
- Equities fall by 1.5% across the region except Nikkei, which is flat
- Gold $1694/oz
A slow and gradual fall in the EUR/USD has been the order of the day. Trading conditions have been quiet given the US Thanksgiving holiday but the continual run of bad news has seen the EUR/USD work though solid bids at 1.3310/15 and is sitting quietly above barrier protection at 1.3300. Bounces have been anaemic. Range: 1.3304/55
AUD/USD has followed a similar line to the EUR/USD in the face of the usual Friday risk aversion but it has found some moderate support on the .96 handle. Range: .9679/.9739
USD/JPY again had one quick 20 pip spike, which took it to the intraday high at 77.52, before settling. Real money selling of the Yen across the other majors is helping USD/JPY to rally modestly. Ranges: 77.07/52
Cable 1.5453/98; USD/CHF .9187/.9224
