- North Korea says South’s actions driving peninsula “to brink of war”
- ECB buying all PIIGS bonds. 5 year bonds in not large apparently
- Eurogroup’s Juncker: I don’t think the euro is in danger
- Spain’s EconMin Salgado: We have to continue giving clear messages and use effective actions
- German November Ifo business climate index 109.3, demonstrably stronger than median forecast of 107.4
- UK Q3 GDP unrevised at +0.8% q/q, +2.8% y/y
- Euro zone September industrial orders -3.8% m/m, +13.5%, demonstrably weaker than median forecasts of -2.5%, +14.7% respectively
- China c.bank’s Hu: Will steer money credit growth back to normal
It’s been another very volatile morning’s trade. Concerns surrounding the euro zone peripheries remain to the fore, while North Korea continues to sabre rattle.
EUR/USD is down on the day,presently at 1.3330, but some way from session low 1.3284. Middle Eastern sovereign buying helped the pairing rally above 1.3400 in very early European trade, where it quickly ran into Asian sovereign selling.
Despite the BIS buying the pairing slumped all the way to 1.3284 in pretty quick order. Russia, well respected model fund, ACB were then seen among notable buyers as we bounced back to the 1.3365/70 area. European corporates were noted selling into this rally, and when the model fund came in and took profit we slipped back. Increasingly nasty choppy market.
USD/JPY up a touch on day, presently at 83.35 from early 83.20. Inbetween though we saw a decent swoon as US treasury yields went lower as risk aversion spiked early. We got down to 82.95 session low. The market was well aware of yesterdays’ reports of China buying interest down at 82.80, and when US yields recovered so did USD/JPY.
GBP/USD down on the day, presently at 1.5770 from early 1.5830, having been as low as 1.5743 as EUR/GBP slumped.
The cross went from early .8470 all the way down to .8429, with stops being tripped through .8440. Middle Eastern and UK clearer buying has helped lift the cross back upto .8450.
EUR/CHF down at 1.3290 from early 1.3335, but some way off session low of 1.3243. Real money was seen buying around the lows, reportedly “profit-taking”
Interestingly China reported buying NZD/USD below .7600 this morning. We’re presently at .7610.
