EUR/USD sits at 1.3315, marginally easier from early 1.3330. Inbetween though we saw the pairing swoon somewhat, reaching session low 1.3247 before recovering. Comments from German FinMin Schaeuble and ECB ‘s Orphanides (see above) helped put euro under early pressure. Major German bank notable seller.

Reports had buy orders, including sovereign interest, lined up at 1.3250/60 and they proved pretty much correct. We reached 1.3247 and then reports circulated that an Asian central bank was buying decent amounts. BIS also stepped in buying around 1.3270/80 lending further underpinning. Things then calmed somewhat before a sudden spurt back above 1.3300.

News that there is strong demand for Spains’ 10 year bond issue no doubt lent decent support. Middle Eastern sovereign, UK clearer and hedge fund some notable names said to be buying on push through 1.3300. Stops now seen through 1.3350 before sell orders clustered up at 1.3375/85.

Cable up about three quarters of a cent at 1.5925 from early 1.5850. We did dip briefly to session low 1.5837 before a robust recovery. Russia seen notable buyer around the lows. Market will have one eye on tomorrows UK December CPI data. Stronger than expected data will underpin growing perception in certain quarters that Bank of England is close to tightening monetary policy.

EUR/GBP down at .8360 from early .8410, having been as low as .8349 so far. Large European corporate seen buying around the low, lending cross some tenuous support.

AUD/USD up at .9950 from early .9870. Pairing rallied, bolstered by reports of good size buy interest lined for the 11:00 GMT fix. We stood around .9920/25 as the fix passed and rallied further in it’s wake. US custodial, who was notable buyer last week, has been buying again today.

USD/JPY has given ground, presently down at 82.55 from early 82.90.