- U.S. Treasury Secretary Geithner: Sees confidence at Davos that worst of crisis is over
- EU gives details on talks over fund – WSJ
- Finland PM: Should concentrate on making the EFSF function better. Funds from EFSF and IMF enough
- French EconMin Lagarde: Improving rescue fund a question of efficiency, not size
- China’s Premier Wen: Will continue to support Europe in debt crisis
- Greek FinMin: We are not thinking of restructuring
- UK PM Cameron: Pressure on euro zone will get greater. German taxpayers don’t see why should pay
- Irish PM Cowen: Will dissolve Parliament on Tuesday and call general election – RTE
- Spain Q4 unemployment rate rises to 20.3%, up from 19.8% in Q3 and worse than median forecast of 19.9%
- Euro zone December M3 money supply +1.7% y/y, weaker than median forecast of +2.0%
- Italy January consumer confidence index falls to 105.9 vs 109.1. Lowest read since August 2010
- UK inflation expectations rise to 3.6% in January from 3.5% in December – Citi/YouGov
- Fine Gael considers debt brake amendment in return for lower rate – Irish Times
- Warning shot for America and Europe as S&P downgrades Japan – AEP at The Telegraph
Greenback very marginally weaker this morning. Market seems to have pretty much hit the pause button ahead of this afternoon’s U.S. GDP release.
EUR/USD at 1.3730 from early 1.3715. Dips below 1.3700 finding ready buyers, while approaches of 1.3750 bringing out the sellers.
Talk of very large stop loss sell orders through 1.3630. Some buy stops through 1.3760. Talk of large 1.3800 barrier option interest.
Cable up at 1.5920 from early 1.5895. EUR/GBP unchanged at .8625. There was talk of large buy interest to be done this morning in the cross, but the best we managed was .8653 before topping out.
USD/JPY marginally easier at 82.35 from early 82.60, and this despite firmer U.S. treasury yields. Guess dollar bulls disappointed with lack of followthrough buying in wake of yesterday’s S&P downgrade.
