- ECB’s Draghi’s EU presentation to EU parliament: Downside risks to economic outlook have increased. ECB temporary measures only limited
- More Draghi: Next few days will be very important to see whether make progress in governance. Some steps are needed in EFSF
- Spanish auctions raised 3.75 bln, top of 2.75-3.75 target range
- French auctions raised 4.346 bln, near top of 3.0-4.5 bln target range
- Euro zone November manufacturing PMI (final) 46.4, in line with flash estimate
- UK November manufacturing PMI 47.6, better than Reuters’ median forecast of 47.0, but still lowest read since June 2009
- French Q3 ILO unemployment rate rises to 9.7%, up from 9.6% in Q2, as expected
- Swiss Q3 GDP +0.2% q/q, +1.3% y/y vs Reuters’ median forecasts of +0.1%, +1.7% respectively
- Bank of England: Euro zone sovereign and banking risks still biggest threats to UK financial stability
- BOE’s King: Effects of EU problems are characteristic of a systemic crisis
- Italy’s Industry Minister: Country risks slipping back into recession
The morning has hummed along nicely again, but like yesterday morning not too much net change on the major spots and crosses. Talking about yesterday, I’m glad I slipped out when I did
EUR/USD up marginally at 1.3485 from early 1.3460. Inbetween we’ve been down initially to session low 1.3417, followed by robust rebound which reached a session high 1.3505 at one stage.
Comment’s by ECB’s Draghi (see above) initally put the single currency under fairly heavy pressure, and despite reports of both BIS and Bank of Korea buying around 1.3450 we reached the 1.3417.
We had earlier received reports of buy orders clustered down “around 1.3420″ and they proved pretty much spot on. We ticked back higher and then news of successful Spanish and French bond auctions got us fleetingly back above 1.3500.
Much talk of “very large” maybe even “huge” 1.3500 option expiry at todays’ New York cut, and we haven’t strayed very far from there in late moring European trade.
Cable up at 1. 5725 from early 1.5700. Release of better than expected manufacturing PMI has lent a modicum of support. Asian sovereign reported decent buyer this morning.
USD/JPY effectively unchanged at 77.70.
USD/CHF down at .9095 from early .9140. EUR/CHF cross down at 1.2265 from early 1.2305.