- Irish central bank governor: Expects loan from Europe, IMF (not a bail-out mind) will be large. Will run into 10’s of billions of euros
- Irish govt minister: Expects 4 year fiscal plan to be published around middle of next week
- Spain PM: Highly probable to meet 2010 growth targets
- UK October retail sales +0.5%, slightly better than median forecast of +0.4%
- UK PSNCR 2.431 bln, lower than median forecast of 6.0 bln, PSNB 9.77 bln, higher than median forecast of 9.0 bln
- UK CBI November manufacturing order book balance -15 vs -28 in October, better than median forecast of -24
- Swiss ZEW investor sentiment -30.9 in November, deterioration from -27.5 in October
- Germany’s Merkel: Euro is vital to German interests
- .Korea to reintroduce withholding tax on foreigners bond investment – FinMin official
- BOJ considers increasing capital to prepare for asset purchasing – Kyodo (report doesn’t mention amount/timing)
- Japanese govt maintains overall economic assessment, says economy at a standstill
- Japan EconMin Kaieda: Can’t say that yen has weakened enough recently
- Nikkei 225 will surge in cycle convergence – Bloomberg
- France’s Lagarde: Euro zone is not at risk of breaking up
- China may hike rates another 100 bps (not all in one go mind) Interesting video
General risk appetite has improved. European stocks have followed their Asian counterparts higher (Stoxx 50 up 1.6% at writing), oil up over a buck, gold up, US treasury yields firmer etc etc.
Irish central bank governor Honohan effectively confirmed EU/IMF bail out (sorry aid package) done deal.
EUR/USD up at 1.3650 from early 1.3590 having been as high as 1.3664 so far. It hasn’t been one way traffic though, more a stepped affair. An early rally peeked over 1.3600 where it ran into strong selling by the BIS. The central banker’s banker continued selling down below 1.3600 and it looked as though we might just have topped out for the morning.
But it wasn’t to be. Comments from Irish central bank governor Honohan confirmed what we already knew instinctifully, that an Irish aid package is all but a done deal. It took awhile but eventually stops through 1.3610 were tripped and they must have been lumpy because we spiked quickly higher.
We topped out at 1.3654 as an Asian sovereign entered the market sellling, but it was only a temporary set back and we eventually got to 1.3664 session high before settling back slightly.
Cable is up at 1.5995 from early 1.5910 having been as high as 1.6006 so far. Once again it hasn’t all been one way traffic.
Cable rose initially reaching 1.5947, just shy of noted technical resistance at 1.5950. A US custodial stepped in selling decent amounts and we slumped back just below 1.5900.
The stay south of 1.5900 didn’t last long (blink and you missed it) and we were soon marching higher again. Stops through 1.5950, 1.5980 and 1.5995 helped fuel the advance.
USD/JPY sits at 83.30, effectively unchanged. Not alot more one can say there.
AUD/USD up at 9885 from early 9840, underpinned by better risk appetite. Talk of decent sell orders now lying in wait up at 9920/30.
