• S.Korea-US joint military exercises at end of November will send clear message to region – S.Korean Foreign Ministry
  • China expresses “concern” about planned US-South Korean military exercises
  • ECB’s Makuch: Euro currency is slightly over-valued, no drama it hit a two-month low
  • Spokesman for EU’s Rehn: Hopes IMF/EU talks with Ireland will conclude by end of November/beginning of December
  • Moody’s: Place some additional Irish bank ratings under review for downgrade
  • Destination inflation: China’s inflation problem is flashback to 1994 – Andy Xie
  • French November consumer confidence -32, versus unrevised -34 in October, slightly better than median forecast of -33
  • Italy November business confidence rises to 101.6, versus upwardly revised 100.1 in October (previous 99.8), demonstrably better than median forecast of 99.6. Highest read since March 2008
  • UK CBI retail sales balance +43 in November versus +36 in October, stronger than median forecast of +33
  • BOE’s King: MPC stands ready to move policy in either direction as balance of risks changes
  • ECB’s Constancio: Euro zone leading the way in budget consolidation, will improve confidence
  • ECB’s Tumpel-Gugerell: Euro zone growth is doing much better than expected a few months ago, data show more optimism
  • Bundesbank: Potential protracted period of low interest rates brings medium-term risks
  • Spain’s Campa says funding position is “comfortable”

It was a little busier than I thought it might have been, given the US Thanksgiving holiday. But when all said and done there has been precious little net change on the major spots and crosses.

EUR/USD sits at 1.3330, marginally firmer from early 1.3315. Asia had traded 1.3308-1.3360 and it looked like those parameters would pretty much hold price action.

We did however see a very brief dip below 1.3300, which reached session low 1.3287.. The move seemed to coincide with comment from ECB’s Makuch that euro is slightly over-valued. Around the same time a nebulous rumour of an Italian downgrade was making the rounds. Hedge fund selling helped push us through 1.3300.

A Canadian bank was said to have been strong buyer around the lows and we quickly returned back above 1.3300.

USD/JPY sits at 83.55, all but unchanged on the day. We did see an early rally which got as high as 83.69 amid reports of hedge fund buying. As we’ve seen on countless ocassions of late there was precious little followthrough and we’ve slowly slipped back.

Cable sits at 1.5750, effectively unchanged on the day. An early rally got as high as 1.5793, but sell orders at 1.5790/00 contained the rally.

USD/CHF probably saw the most action. Sits up at .9995 from early .9965, but managed to rally as high as 1.0021 at one juncture, taking out well documented barriers at 1.0000 and 1.0020 along the way. More barrier interest now noted at 1.0040.