- Trichet: Main lesson of crisis is that we must improve governance in Europe
- ECB buying euro zone bonds aggressively
- S&P puts Poruguese banks on negative watch. Follows recent move to put Portugal on negative credit watch
- Main Irish opposition party Fine Gael: Drawing down full IMF/EU facility at 5.8% prohibitive, potentially unsustainable (and there’s the rub)
- Leader of Fine Gael: Believes Irish government will pass budget with support from coalition partners
- German govt spokesman: Euro will be a key point on agenda at German/French summit next week
- ECB’s Nowotny; European countries with structural problems like Greece, Portugal making progress
- Spain’s Salgado: Can’t have common currency without common economic policy
- Euro zone November (final) services PMI 55.4, marginally firmer than flash 55.2 read
- UK November services PMI 53.0, down from 53.2 in October and below median forecast of 53.2
- Euro zone October retail sales +0.5% m/m, +1.8% y/y, stronger than median forecasts of +0.2%, +1.0% respectively
- China’s shift to prudent monetary policy means loan growth to slow next year – PBOC advisor
- China to promote trade balance by expanding imports. To further boost domestic demand, especially consumption – Politburo
ECB in buying euro zone periphery bonds this morning resulting in lower yields. This and some OK euro zone data helped support the euro which saw across the board gains.
EUR/USD up at 1.3260 from early 1.3215 having been as high as 1.3269.
Sell orders noted at 1.3230/50 provided a stubborn barrier to the upside. Eventually stronger than expected euro zone retail sales data helped give the euro an added little push which tripped stops just above said area.
Middle Eastern sovereign selling has been subsequently noted helping contain gains. Interesting development, as Middle Eastern sovereign buying has been a notable feature recently. Guess a bit of well-earned profit taking ahead of US jobs data.
USD/JPY sits at 83.65, effectively unchanged on the day.
Cable marginally firmer on day, up at 1.5635 from early 1.5610, but some way off session high 1.5681. Stops were tripped through 1.5655 accelerating the upside move before a slightly surprising late morning swoon.
AUD/USD up at .9810 from early .9755. China sold above .9800, but has had only a limited impact on the ebullient aussie.