- Australian November retail sales 0.0% (+0.3% expected)
- Weekend reports suggest that China’s growth forecasts will be revised lower to 7%
- Latest China lending and money supply data show monetary conditions easing
- USD/CNY mid-rate fixed higher at 6.3236
- UK finance services sector showing improved growth
- Czech central bank: Greece should leave EZ if EU not able to provide massive funding
- Merkel and Sarkozy meet today
- Gold and Oil slip 0.5% to $1608/oz and $101/bbl respectively
- Nikkei closed. Regional bourses -0.75% on average, except Shanghai which is +1%
The EUR/USD opened lower in early interbank trade and has spent the session consolidating below 1.2700. The comments related to Greece and the Merkel-Sarkozy meeting ensured that EUR bears remained in control. EUR/USD closed in NY on Friday at 1.2720, opened in early interbank markets at 1.2685 and has traded a 1.2664/1.2705 range for much of the session. EUR/JPY posted fresh 11 year lows at 97.25 but some healthy buying on the Asian open helped relieve the pressure. Ranges: 1.2664/1.2705, EUR/JPY 97.25/75
AUD/USD also opened slightly lower, following the EUR, and the fall accelerated after the lower than expected retail sales figures. With Chinese growth concerns also increasing, the market is now becoming more bearish on Australian rates for 2012. Ranges: 1.0142/1.0213
USD/JPY moved alongside flows in the crosses inside a tight range, 76.77/99.
Cable 1.5394/1.5429. USD/CHF .9553/95
