Not the most inspiring of morning with an early sell off in the EUR/USD down to 1.2925 as European bourses failed to follow the buoyed Shanghai Composite, with Italy and Spain’s bourses slipping around 0.5%. The announcement that Spain was extending its short selling ban for 3 months not helping matters either.

The move did unearth some strong bids under 1.2930 from sovereigns, which led the subsequent recovery to the mid 1.2950’s and a bounce in stocks. There’s talk of sovereign supply now sitting up in the 1.2970/75 area.

USD/JPY’s played around the 80.00 level all morning as related crosses continue to build higher on real money buying, but the USD has yet to challenge reported offers ahead of the buy stops up through 80.20

GBP/USD’s firmed on the cross buying and EUR/GBP sales, assisted by some sovereign demand after the weaker PMI data, but has met with headwinds just short of the Mid October highs (1.6178).

AUD/USD slept soundly through a 1.0355/80 range, but remains on a firm footing as EUR/AUD eases back from 1.2500

Gold’s steadily building higher up around $6 on the session with a high of 1725.50, and December WTI crude trading tightly between 86.25 and 82.60