- BOJ Gov Shirakawa: Weak demand root cause of deflation. BOJ to maintain easy policy to beat deflation. Yen’s rise one factor behind Japan economy’s big dip after global crisis
- Shanghai share index ends up provisional 2.6%, biggest daily gain this month
- Greek parliament approves government’s 2010 austerity budget
- Japan PM Hatoyama says won’t resign over political funding scandal
- Russian President Medvedev: Russian economy could grow 2.5 to 5.0% in 2010
- Japan Govt proposing spending more that y92 trln in 2010/11 budget – Coalition official
- Russian President Medvedev: Russia to work on new generation of nuclear missiles
- John Lewis 4 days to Dec 23 department store sales up 27%
The USD has seen some further across the board weakness in very thin holiday markets, underminned by yesterday’s release of disappointing new home sales/ University of Michigan consumer sentiment data.
The euro meanwhile has been bolstered marginally, in it’s own right, by news that the Greek parliament has approved the government’s 2010 austerity budget. The budget is designed to aggressively cut the country’s fiscal deficit through spending cuts and higher taxes.
EUR/USD started around 1.4340 and made ground early. However the move stalled out for awhile, the euro bulls struggling to ellicit a breech of well-touted technical resistance at 1.4372. They eventually managed it with a US name said to have been an aggressive buyer.
Well documented stops were tripped on move through 1.4375 adding fuel to the rally. Sources touted sell orders lying at 1.4400 up through 1.4420 and they just about managed to cap the rally. Having been as high as 1.4418 we’re back down at 1.4400 presently.
GBP/USD started around 1.5985 and rallied early. We’ve been as high as 1.6022 so far, just shy of 1.6025/30 technical resistance, presently back at 1.6010. Cable’s rally has been restricted somewhat by a firm EUR/GBP cross which is up at .8995 from an early .8970, having been as high as .9010 at one point.
USD/JPY is down at 91.25 from an early 91.40 in line with general USD weakness.
EUR/JPY is up on the morning, presently at 131.48 from an early 131.05.
