Asia picked up the baton with EUR/USD around 1.3360 and have proceeded to push it back lower. We sit presently down at 1.3305.
Euro zone periphery concerns remain very much to the fore. Much focus on FT Deutschland article ,which reports that ECB and majority of euro zone members urging Portugal to follow Ireland’s lead and make formal request for aid.
A report that Spanish foreclosures could triple next year hardly helped matters.
A sharply lower aussie dollar (after RBA’s Stevens made less hawkish comments suggesting no more rate hikes for awhile) and continuing North Korean sabre rattling are other factors having an impact.
Euro zone data today:
German CPI for November (provisional)
07:00 GMT: German import price index for October expected +0.1% m/m
07:45 GMT: French consumer spending for October expected +0.2% m/m, +0.4% y/y
09:00 GMT: Euro zone M3 money supply for October expected 3m +1.1%, +1.3% y/y
European stocks expected to trade lower early. DAX seen off around 0.4%, CAC 40 off around 0.8%.
Sell stops now seen through 1.3285 and more through 1.3245.