- German FinMin Schaeuble: Programme for Ireland is appropriate
- German FinMin Schaeuble: Expects a new Irish govt would also feel obliged to accept deal. Not all details on Ireland package, such as interest rate levels, have been worked out
- Roubini: Portugal likely to need bailout
- Introducing the European Stability Mechanism – ft.com/aplphaville
- Germany faces its awful choice as Spain wobbles – AEP in The Telegraph
- UK October mortgage approvals 47,185, in line with median forecast of 47,000
- Euro zone November business climate 0.96, weaker than median forecast of 1.05
Euro has had another bad morning, despite weekend confirmation of the Irish bailout. It started off quite promising for the euro, but then turned to mush. Not for the first time.
EUR/USD started around 1.3230 and rallied quickly, aided by decent buying from Russia. Things then ground to a halt as decent renewed sell interest emerged around 1.3300.
As periphery bond rates started to climb and stocks fall again, so the euro came under pressure. Rumours surfaced that the Italian bond auction was going badly and this spooked the euro bulls further, as did Roubini’s comments that Portugal is likely to need a bailout.
Middle Eastern sovereign buy interest surfaced just under 1.3200 and lent some temporary support, but temporary it was. We saw stops tripped through 1.3180 and despite Russia turning up on the bid in the 1.3165/70 area we’ve been as low as 1.3136 so far.
USD/JPY is marginally firmer in sluggish trade, presently at 84.20 from early 84.05.
Cable also little changed, down around 15 points on the day as European stocks struggled, but supported to some extent by decent EUR/GBP selling interest. The cross is finishing the morning at .8435, close to its session low .8426.
