- UK October trade deficit STG 7.1 bln
- Market awaits pre-budget report with trepidation
- German Oct trade surplus EUR 12.9billion
- Greek government bonds continue to fall as do bank stocks
- Regional bourses are trading pretty flat through the mid-morning
- Gold is at $1144/oz, having recovered the 1% loss it made during Asia
Another volatile morning in European trade was again led by the GBP. Cable had already broken below the 1.6250 level where China were said to be bidding and early London saw this as a big reason to sell. Cable fell to 1.6165 and GBP/JPY was also heavily sold, falling to 142.00. Most of the selling was sentiment driven as traders await the pre budget report later today. The subsequent recovery has also been very strong as day-traders lost their nerve and started to cover. Resistance at .9090 in EUR/GBP held for the second day in a row and this was the catalyst for the short-covering splurge. Ranges: cable 1.6165/1.6352, EUR/GBP .9030/90, GBP/JPY 142/144.34.
EUR/USD has been buffeted by cross plays. Positive German data supported the single currency but this was to a degree offset by the continuing Greek drama. Both EUR/GBP and EUR/JPY have had volatile sessions but are not much changed from the NY close. Ranges: EUR/USD 1.4689/1.4781, EUR/JPY 128.75/130.10
USD/JPY has broken below the previous pivotal band at 88.20/40 and this led to an early sell-off which has been recovered on the JPY-crosses bounce. Range 87.37/88.30