- ECB’s Bini Smaghi: Unemployment expected to continue to rise in coming months. Sectors like construction, cars, finance will never return to pre-crisis growth levels
- French EcoMin Lagarde: Q4 will be as good or a little better than Q3
- UK Nationwide house prices +0.4% m/m, +5.9% in December, stronger than median forecasts of +0.3%, +5.6% respectively
- Shanghai share index ends up 0.4%, 2 week closing high. Ends with 80% 2009 gain
- BOE says lenders increased secured credit to households in Q4, further slight rise seen in Q1 2010
- China PM Hu: To maintain economic policy stability, continuity in 2010. Will focus more on quality of economic growth next year
Not a good morning for the greenback which has posted losses against all the other majors bar the yen.
EUR/USD is up at 1.4415 from an early 1.4365 having been as high as 1.4441. The early rally was fierce, exacerbated by very thin month/year end liquidity. Stops were tripped through 1.4400 accelerating the move with an Asian sovereign, Middle East sovereign, model fund seen strong buyers.
GBP/USD has made the most of the general USD weakness, presently up at 1.6195 from an early 1.6075. Sterling got an additional boost from the release of strong Nationwide house price data (see above) There was also talk of Hershey preparing a lumpy offer for Cadbury, but press reports would suggest that a decision on what Hershey is to do will be made next week.
EUR/GBP has continued the trend started yesterday, down at .8895 from an early .8935.
USD/CHF is down at 1.0295 from an early 1.0350. EUR/CHF has come under renewed pressure, down at 1.4835 from early 1.4865, as the market probes for SNB/BIS intervention interest. Talk of option barrier interest down at 1.4800.
USD/JPY sits at 92.35 pretty much unchanged in very narrow rangebound trade.
