- Iran will take action if US carrier returns to Gulf – Army chief tells Fars news agency
- Greece will ‘likely’ need extra fiscal measures – Spokesman Kapsis
- Romney: US won’t give a dollar to save Europe – La Stampa
- Jim Rogers: Bearish gold, bullish euro – Reuters Insider
- Swiss PMI 50.7 in December after 44.8 in November. A surprisingly strong read, the median forecast having been around 45.4
- German December s.a jobless total -22k to 2.888 mln, compared to Reuters’ median forecast of -20k
- UK manufacturing PMI rises to 49.6, up fairly sharply from revised 47.7 in November (prev 47.6), much better than median forecast of 47.3
- ECB’s Weidmann: Warns financing public debt socializes risks
Nice to see some cautious optimism permeating the financial markets as the New Year gets underway. Probably won’t last, but what the heck. Enjoy it while ya can
European stocks, oil, gold, US treasury yields all firmer this morning.
EUR/USD up at 1.3045 from early 1.2975, having been as high 1.3059. Early rallyette peeked over 1.3000, only to be pushed back by renewed fund selling.
We drifted back lower before buying from the BIS around 1.2975 lent support. From there we crept slowly back higher, before notable buying from a US investment house helped take out buy stops through 1.3010.
More stops tripped through 1.3025 and 1.3050 getting us to the session high before a slight pullback.
Cable up at 1.5600 from early 1.5550. Pairing garnered support from general risk on backdrop and release of markedly stronger than expected manufacturing PMI data (see above)
USD/JPY touch easier at 76.67 from early 76.75, the risk on backdrop and firmer US treasury yields not helping any. Talk of Kampo buy interest now down at 76.50/60.
AUD/USD up at 1.0360 from early 1.0295, having been as high as 1.0366 after buy stops tripped through 1.0310 and 1.0340.