- Japan joins China in assisting Europe in debt crisis – Bloomberg
- Finnish FinMin Katainen: Portugal needs to take strong political decisions to calm markets. Ireland may not be the last country to seek EU, IMF assistance (well, that’ll help)
- Ex C.Bank advisor: China must be wary of euro bond investment risks. Bonds backed by European Stability Find safer than national debt
- Portugal FinMin: Does not see need for bailout. Obligaton is to do everything necessary to avoid bailout
- Portugal PM Socrates: Budget execution surpasses expectations in 2010
- ECB buys periphery bonds again
- Brisbane prepares for worst flood in 118 years – Brisbane Times
- Bank of France leaves Q4 French GDP forecast unchanged at +0.6%. December industry sentiment indicator rises to 108 vs 107 in November. Services sentiment indicator rises to 99 vs 98
- Back in the old euro denial routine – WSJ
- EMU debt crisis edges closer to the core – AEP in The Telegraph
- UK’s fragile services sector risks underminning recovery, BCC warns
Dollar weaker on the morning. For most of the session we were virtually at a standstill until a very late flurry.
EUR/USD up at 1.2970 from early 1.2935. ECB came in and bought periphery bonds. This helped narrow periphery/German government bond yield spreads which triggered EUR/USD rally.
Middle Eastern sovereign sold in 1.2945/50 area causing us to pause, but this interest was soon overwhelmed by hedge fund buying.
Reports now have decent-sized sell orders lying in wait up at 1.3000/20.
Cable up at 1.5575 from early 1.5555. Late morning buying by the Reserve Bank of India helped cable push into plus territory.
AUD/USD up at .9875 from early .9835. Again, as in EUR/USD, hedge fund buying notable. Trailing stops tripped through .9865.
USD/JPY fractionally easier, down at 82.95 from early .83.05.
