- North Korean army: “It is not worth reacting to provocation” from SouthKorea’s exercise – KCNA
- German November PPI +0.2% m/m, +4.4% y/y, marginally weaker than median forecasts of +0.3%, +4.5% respectively
- UK interest rates ‘will have to rise sixfold in two years’ – CBI
- ECB’s Trichet: Believes euro not cause of euro zone crisis
- Self-righteous Germany must accept a euro-debt union or leave EMU – AEP at The Telegraph
- OECD: Spain could raise taxes further if more consolidation measures needed
- Aussie leads ‘extreme’ currencies Deutsche says avoid – Bloomberg
- Mortgage approvals by major UK lenders 45k in November, up from 44k in October. Amount lent in November 1.3 bln, up from 1.1 bln in October – BOE
EUR/USD sits at 1.3155, exactly where it was when I arrived about 6 1/2 hours ago. An early rally failed to reach the 1.3187 overnight high, as BIS stepped in and sold around 1.3175. Selling was also noted out of Geneva. Guess it’s a Swiss thang.
Sell stops seen through 1.3100. Buy stops through 1.3210.
USD/JPY marginally easier, down at 83.75 from early 83.90. Buy orders seen clustered 83.60/70, sell stops through 83.55 and more through 83.40.
Cable has gained marginally, up at 1.5550 from early 1.5510. Indeed sterling hasn’t done too badly in general, EUR/GBP down at .8460 from early .8480. The CBI raising the spectre of higher UK interest rates will have helped here (see above)