- German November import prices +0.4% m/m, -5.0% y/y vs median forecasts +0.3%, -5.1% respectively
- Shanghai share index ends up 0.8%
- China Central Bank reiterates going to stick to appropriately loose monetary policy
- French November consumer spending -0.1% m/m vs median forecast flat
- Italy December consumer morale rises to 113.7 vs 112.8 in November, better than median forecast 112.5 and highest read since July 2002
- Bank of England MPC voted 9-0 to keep interest rates at 0.5%, QE at £200 bln at December meeting – Minutes
- UK November mortgage approvals 44,713, up from 42,552 in October and better than median forecast of 43,000
Seems Europe has followed Asia’s lead and thrown in the towel.
EUR/USD started out around 1.4250/53 and presently sits at 1.4256/58 with trading during the European session confined to an extremely narrow range. Touted buy orders at 1.4220 down through 1.4200 and sell orders at 1.4280 up through 1.4300 never looked seriously like coming into play.
Cable sits at 1.5955, exactly where it was nearly 7 hours ago when I started. Cable had a little dip initially and made it to a session low 1.5925 just after the BOE minutes came out before recovering. I had initial support at 1.5920, resistance at 1.5980, and they’ve easily help price action.
There was an article in the Daily Mail touting further QE in 2010 and on another day that may have pressured sterling, but not today.
USD/JPY at 91.80, maybe 10/15 points firmer on the session. Higher US yields and BOJ’s determination to keep deflationary pressures in check continue to lend the pairing underpinning.