- Zhou Hai, Chinese central bank researcher: China’s central bank should increase its foreign exchange reserve holdings of euros and yen, reflecting China’s growing trade with EU and Japan. US dollar holdings should be reduced – Financial News
- Zhou Hai later tells Reuters, comments “purely my personal view.”
- German Gfk November consumer sentiment indicator down at 4.0 from 4.2 in October, weaker than median forecast of 4.5
- Russia central bank moves intervention rate 5 kopecks to 35.45 after purchasing $700 mln
- Pound is poised for Goldman rally not helping Brown - Bloomberg article
Well that was kinda boring, even for a Monday. Only major spot pairing showing any real change is cable and that only half a cent, which for that puppy isn’t much of anything.
Cable having started around 1.6280 is presently up at 1.6330. The pairing rallied early with the USD in general under a little pressure in the wake of the Chinese central bank researcher’s comments in the Financial News. (see above)
Cable got above 1.6300 and was looking well-bid when Danny Blanchflower’s views aired on Bloomberg TV. The ex MPC member sees the BOE needing to do a further GBP 50 bln QE and feels the QE programme may extend out to GBP 250 bln.
That saw cable fall to a European session low of 1.6265, where BP is said to stepped in to buy it’s latest, and final, installment of cable, and that helped cable recover it’s poise. It was also interesting to see Bloomberg post a bullish pound article (see above). Obviously everyone’s not so down on our beloved currency!!
Should be noted BOE’s Posen scheduled to speak at 18:35 GMT this evening.
EUR/USD sits at 1.5035, pretty much where we started out in Europe. Talk of sovereign buy interest overnight down at 1.4980/85 is helping limit downside, talk of sell orders at 1.5070 up through to 1.5100 barrier option interest limiting the upside. Result so far, stalemate.
Talk of some stops gathered around 1.5085 and more just above 1.5105.
USD/JPY hardly moved either. Having been knocked lower overnight by Zhou Hai’s comments has recovered about 10 pips to 91.85 at wrting. Been that kind of morning.