- Spanish auction result
- Eurogroup’s Juncker: Eurozone is better off now than at the start of 2012, worst of crisis probably over
- Ex ECB’s Orphanides: ECB should cut rates today
- Greek Oct unemployment rises to 26.8%, up from 26.2% in September
- French Nov Industrial output rose +0.5% m/m, -3.6% y/y
- French Dec EU harmonized CPI rises +0.4% m/m, +1.5 % y/y. Dec CPI rose +0.3%m/m, +1.3% y/y
- French Dec business confidence rises to 95 from 91 in November
- Merkel faces skepticism over Cyprus bailout aid – ekathimerini
- Central banks must switch off the printing presses before it’s too late..-UK Telegraph
A slow opening again in Europe for the EUR/USD , sidelined by the strong USD /JPY and AUD/USD rallys sparked by strong Chinese trade data .
On the London opening there was a gentle rally initially prompted by an Asian sovereign but the pair stalled into offers in the 1.3070’s.
Falling yields in the Spanish 10yr bonds ahead of the auction prompted a further rally in the EUR/USD amid talk of Middle East demand and the pair rallied through stops at 1.3080 to 1.3111 before easing to settle around 1.3100.
Spanish 10 yr yields fell to 10mth lows below 5% on the move after the strong auction result.
Cable was largely sidelined in early trade but picked up in the wake of the EUR/USD from 1.6005 to 1.6059 before talk of UK clearer offers pegged back the pound ahead of the BOE announcement. Middle Eastern names again reportedly showing some demand on the run up.
USD/JPY was confined 88.03-31 with most activity seen in the crosses, after the USD’s sharp rise yesterday and in Asia o/n.
AUD/USD continued to claw it’s way higher aided by relentless AUD/JPY ongoing demand; the cross hitting fresh 4yr 4 mth highs of 93.29 in the process. AUD/USD meanwhile stalled ahead of the Dec 17 high of 1.0580, but remains on a firm footing just below
February WTI Crude oil joined the bandwagon on the back of the Chinese data and received another sharp boost following the EUR/USD, rising to $94.67 from early session lows around $93.40
European bourses were largely flat bar small losses in the CAC40 and gains in the Italian FTSE MIB
