- German FinMin: Euro strength vs dollar weighing on German exports
- “Reserve may have rushed on interest rates” – The Australian
- Shanghai share index ends up 0.3%, snaps 4 days of declines
- China CB advisor Fan: USD may fluctuate in short-term, continue to depreciate long-term. US economy expected to remain sluggish for a long-time
- German October construction orders +0.7% y/y
- European Commission Report: Euro zone economic recovery gaining momentum. Eventual withdrawal of fiscal stimulus, rising unemployment are threats for growth. Euro appreciation could be “serious concern” for more open euro-area economies. Euro CPI-deflated real exchange rate is overvalued by 7-8%
- Dubai World says creditors must appoint committee to discuss options for next stage
The USD firmed early, helped by unconfirmed rumours the SNB had intervened in USD/CHF to help weaken swissy. Traders also noted yesterdays Times article entitled “European banks face capital crisis”, which will have helped underpin European banking concerns. That said the USD soon gave back early gains and we remain, for all intents and purposes, unchanged on the day. Comments from China Central Bank advisor (see above)will have helped curtail the dollar’s advance.
EUR/USD started around 1.4340, sold-off to 1.4280 support from where it bounced back, presently at 1.4345. Talk of buy orders down at 1.4250/60 ahead of touted 1.4250 barrier option. Stops seen through 1.4250. Sell orders noted at 1.4350/60 and then at 1.4400.
USD/CHF started around 1.0420, spiked to 1.0482 session high on unsubstantiated talk of SNB intervention and then slowly drifted back. Presently at 1.0420, unchanged on the day.
Cable sits at 1.6120, marginally easier on the day from an early 1.6145 in unusually quiet trade.
USD/JPY sits at 90.45, very marginally firmer from an early 90.30. Talk of Japanese importer bids down at 90.20/30, Japanese exporters at 90.70 up through 91.00.